Fox Company built and leased a sock manufacturing machine to Knox Corporation. The lease was signed on January 1, 2020. The lease is for an 8-year period. The first payment of the 8 annual payments was made on the day the lease was signed. The economic life of this machine is 10 years. Fox sets the payments to earn a rate of return of 5% and expects the residual value of the machine will be $10,000 at the end of the lease term, but only requires Knox guarantee $3,000, leaving $7,000 of the residual value unguaranteed. Knox's incremental borrowing rate is 7%. The fair market value of the machine is $120,000. The machine originally cost Fox $80,000. The machine is not specialized in nature and is returned to Fox at end of lease. Fox and Knox both have a fiscal year end of 12/31. Round to the nearest dollar. What is the payment amount Fox will require Knox to pay