CullumberInc. leased a new crane to Bramble Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $46,500 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $230,000, and a cost to Cullumber of $230,000. The estimated fair value of the crane is expected to be $40,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cullumber and Bramble adjust and close books annually at December 31. Collectibility of the lease payments is probable. Bramble's incremental borrowing rate is 10%, and Cullumber's implicit interest rate of 10% is known to Bramble.