Exercise 21A-12 a-f On January 1, 2017, Carla Vista Company leased equipment to Flynn Corporation. The following information pertains to this lease 1. The term of the non-cancelable lease is 6 years. At the end of the lease term, Flynn has the option to purchase the equipment for $3,000, while the expected residual value at the end of the lease is $8,000. 2. Equal rental payments are due on January 1 of each year, beginning in 2017 3. The fair value of the equipment on January 1, 2017, is $150,000, and its cost is $120,000. 4. The equipment has an economic life of 8 years. Flynn depreciates all of its equipment on a straight-line basis. s. Carla Vista set the annual rental to ensure a S% rate of return. Fynns incremental borrowing rate is 6%, and the implicit rate of the lessor s unknown. 6. Collectibility of lease payments by the lessor is probable. Both the lessor and the lessee's accounting periods end on December 31 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Discuss the nature of this lease to Carla Vista and Flynn The nature of this lease for Carla Vista is a The nature of this lease for Flynn is a lease. lease. Calculate the amount of the annual rental payment. (Round answer to O decimal places, e.g. 5,275 Annual rental payment