Exercise 21A-17 a-c (Part Level Submission) On January 1, 2017, Metlock Co. leased a building to Ivanhoe Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of 2. 3. 4. 5. 6. $3,600,000 (unguaranteed) The leased building has a cost of $4,100,000 and was purchased for cash on January 1, 2017. The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. Lease payments are $265,000 per year and are made at the beginning of the year. Ivanhoe has an incremental borrowing rate of 5%, and the rate implicit in the lease is unknown to Ivanhoe. Both the lessor and the lessee are on a calendar-year basis