9) XYZ, Inc. decided to lease a new building for its home office. The data associated with the lease are as follows: Item Amount The fair market value of the building, which also is $2,500,000 the book value on the lessor's books. The expected useful life of the building 25 Years Purchase price of the building at the end of the Assigned based on an estimate of the lease fair market value of the building at the end of the lease Length of the lease 18 years XYZ, Inc.'s incremental borrowing rate, which also 10% approximates the lessors implied return on the lease. Annual lease payments $277,391 XYZ, Inc. has a AA bond rating and is considered an excellent credit risk