Current Attempt in Progress

Ayayai Leasing Company agrees to lease equipment to Pina Corporation on January $1,2025.$ The following information relates to the lease agreement.

The term of the lease is $7$ years with no renewal option, and the machinery has an estimated economic life of $9$ years.

The cost of the machinery is $$541,000,$ and the fair value of the asset on January $1,2025,$ is $$760,000.$

The lease agreement requires equal annual rental payments, beginning on January $1,2025.$

The collectibility of the lease payments is probable.

Ayayai desires a $10\%$ rate of return on its investments. Pina's incremental borrowing rate is $11\%,$ and the lessor's implicit rate is unknown.

$($Assume the accounting period ends on December $31.)$

Calculate the amount of the annual rental payment required. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.58,972.)$