Exercise 21-4 Castle Leasing Company signs a lease agreement on January 1, 2014, to lease electronic equipment to Jan Way Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Jan Way has the option to purchase the equipment for $16,270 upon termination of the lease. 2. The equipment has a cost and fair value of $173,900 to Castle Leasing Company. The useful economic life is 2 years, with a salvage value of $16,270. 3. Jan Way Company is required to pay $5,310 each year to the lessor for executory costs. 4. Castle Leasing Company desires to earn a return of 12% on its investment. 5. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor