Bramble Inc. leased a new crane to Grouper Construction Inc. under a six-year, non-cancellable contract starting February 1, 2023. The lease terms require payments of $21,500 each February 1, starting February 1, 2023. Bramble will pay insurance and repair and maintenance charges on the crane, which has an estimated life of 12 years, a fair value of $160,000, and a cost to Bramble of $160,000. The crane's estimated fair value is $50,000 at the end of the lease term. No bargain purchase or renewal options are included in the contract. Both Bramble and Grouper have calendar year ends and use IFRS. Collectibility of the lease payments is reasonably certain and there are no uncertainties about unreimbursable lessor costs. Grouper's incremental borrowing rate is 8% and Bramble's implicit interest rate of 7% is known to Grouper