Current Attempt in ProCrane Corp., a lessee, entered into a non$-$cancellable lease agreement with Galt Manufacturing Ltd$.,$ a lessor, to lease special$-$purpose

equipment for a period of seven years. Crane follows IFRS and Galt follows ASPE. The following information relates to the agreement:

Lease inception

May $2,2023$

Annual lease payment due at the beginning of each lease year

$$?$

Residual value of equipment at end of lease term, guaranteed by an independent third party

$$100,100$

Economic life of equipment

$10$ years

Usual selling price of equipment

$$414,200$

Manufacturing cost of equipment on lessor's books

$$326,800$

Lessor's implicit interest rate, known to lessee

$12\%$

Lessee's incremental borrowing rate

$12\%$

Repairs and maintenance per year to be paid by lessee, estimated

$$14,470$

The leased equipment reverts to Galt at the end of the lease, although Crane has an option to purchase it at its expected fair value at

that time.

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

$($a$)$

Your answer is incorrect.

Calculate the lease payment determined by the lessor to provide a $12\%$ return. $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$

and final answer to $0$ decimal places, e$.$g$.5,275.)$

The lease payment $To record interest.$)$