Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Larkspur Leasing Company and Crane Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $18,922.70 Bargain purchase option price at end of lease term $5,000 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $65,000 Fair value of asset at May 1, 2020 $85,000 Lessor's implicit rate Lessee's incremental borrowing rate The collectibility of the lease payments by Larkspur is probable. 8 % 8 %