Carla Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement. Inception date January 1, 2020 Lease term Fair value of equipment Jan. 1, 2020 Economic life of leased equipment Annual rental payments starting Jan. 1, 2020 Option to purchase at the end of the term 5 years $170,000 7 years $29,962 none Depreciation method Residual value Carla's incremental borrowing rate Straight-line none 8% Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.