Fair value of leased asset: $$92,000$

Lease term: $5$ years

Payment frequency: Annual

Payment timing: End of year

Guaranteed residual value: $$23,000$

Expected payout under guaranteed residual: $$12,000$

Interest rate implicit in the lease $($known to lessee$)$: $9\%$

Lessee's incremental borrowing rate: $8\%$