Assume that on December 31, 2019, Kingbird Aerospace signs a 8-year, non-cancelable lease agreement to lease a hanger from Aero Field Management Company. The following information pertains to this lease agreement: 1. The agreement requires equal rental payments of $165,316 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019 is $1,118,916. 3. 4. 5. The building has an estimated economic life of 10 years, a guaranteed residual value of $49,000, and an expected residual value of $34,100. Kingbird depreciates similar buildings on the straight-line method. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. Kingbird's incremental borrowing rate is 6% per year. The lessor's implicit rate is not known by Kingbird. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)