Cleveland Inc. leased a new crane to Abriendo Construction under a 6-year noncancelable contract starting January 1, 2014. Terms of the lease require payments of $33,400 each January 1, starting January 1, 2014. Cleveland will pay insurance, taxes, and maintenance charges on the crane, which has an estimated life of 12 years, a fair value of $302,400, and a cost to Cleveland of $302,400. The estimated fair value of the crane is expected to be $48,400 at the end of the lease term. No bargain-purchase or renewal options are included in the contract. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is reasonably certain, and no uncertainties exist relative to unreimbursable lessor costs. Abriendo