Exercise 21-8 The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Inception date: May 1, 2014 Annual lease payment due at the beginning of 2014 each year, beginning with May 1, $21,227.60 Bargain-purchase option price at end of lease term $4,000 Lease term 5 year S Economic life of leased equipment 10 year S Lessor's cost $65,000 Fair value of asset at May 1, 2014 $91,000 Lessor's implicit rate 10 %