ConcordCorporation manufactures specialty equipment with an estimated economic life of 12 years and leases it toBridgeportAirlines Corp. for a period of 10 years. BothConcordandBridgeportAirlines follow ASPE. The equipment's normal selling price is $209,513and its unguaranteed residual value at the end of the lease term is estimated to be $14,100.BridgeportAirlines will make annual payments of $26,900at the beginning of each year and pay for all maintenance and insurance.Concordincurred costs of $101,200in manufacturing the equipment and $6,480in negotiating and closing the lease.Concordhas determined that the collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is10%.