Calculate the amount of the annual rental payment required. $($Round present value factor calculations to $5$ decimal places, e$.$g$.$

$1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.58,972.)$

Annual rental payment $,$$ Pina Leasing Company agrees to lease equipment to Grouper Corporation on January $1,2025.$ The following information

relates to the lease agreement.

The term of the lease is $7$ years with no renewal option, and the machinery has an estimated economic life of $9$ years.

The cost of the machinery is $$525,000,$ and the fair value of the asset on January $1,2025,$ is $$713,000.$

At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $$45,000.$ Grouper

estimates that the expected residual value at the end of the lease term will be $$45,000.$ Grouper amortizes all of its

leased equipment on a straight$-$line basis.

The lease agreement requires equal annual rental payments, beginning on January $1,2025.$

The collectibility of the lease payments is probable.

Pina desires a $11\%$ rate of return on its investments. Grouper's incremental borrowing rate is $12\%,$ and the lessor's

implicit rate is unknown.

$($Assume the accounting period ends on December $31.)$ Calculate the amount of the annual rental payment required.