CALCULATOR FULL SCREEN PRINTER A-6 b-f (Part Level Submission) asing Company agrees to lease equipment to Sage Corporation on January 1, 2017. The following information relates to the lease agreement. of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. of the machinery is $523,000, and the fair value of the asset on January 1, 2017, is $758,000. nd of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $108,000. Sage estimates that the expected residual v m will be 108,000. Sage amortizes all of its leased equipment on a straight-line basis. se agreement requires equal annual rental payments, beginning on January 1, 2017. lectibility of the lease payments is probable. nd desires a 10% rate of return on its investments. Sage's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. he accounting period ends on December 31.)' to view factor tables answer is incorrect. Try again. places e.g. 58,972.) the amount of the annual rental payment required. ( Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final a payment