Abbott Equipment leased a protein analyzer to Werner Chemical, Incorporated, on September 30, 2024.

• Abbott purchased the machine from NutraLabs, Incorporated, at a cost of $5 million.
• The five-year lease agreement calls for Werner to make quarterly lease payments of $326,290, payable each September 30, December 31, March 31, and June 30, with the first payment on September 30, 2024.
• Abbott's implicit interest rate is 12%. The useful life of the equipment is five years.