D. Seller-lessee Seller-lessee 7. On January 1, 2022, Yancey, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Holt Warehouse Company. The following information pertains to this lease agreement. (a) The agreement requires equal rental payments at the beginning of each year. (b) The fair value of the building on January 1, 2022 is 6,000,000; however, the book value to Holt is 4,950,000. (c) The building has an estimated economic life of 10 years, with no residual value. Yancey depreciates similar buildings using the straight-line method. (d) At the termination of the lease, the title to the building will be transferred to the lessee. (e) Yancey's incremental borrowing rate is 11% per year. Holt Warehouse Co. set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by Yancey, Inc. (f) The yearly rental payment includes 15,000 of executory costs related to property tax on the property. Question Group (16 Points) I (1) What is the annual lease payment excluding executory costs? (Rounded to the nearest dollar.) Multiple-Choice (4 Points) O A. 272,702 OB. 872,702 O C. 887,702 O D. 902,702 Up to 8 Up to 73% Core faster Jill ASUS VivoBook F3 F4 F5 F F7 F8 F9 FIO F12 IA Pause Pit Sc Insert &