Hateld Corporation leases a tractor from Star Leasing with a ve-year non-cancelable lease on January 1, 2011 under the following terms: 1. Five payments of $26,379.74 (a 9% implicit rate} due at the end each year. 2. The fair value of the tractor is $100,000. 3. The lease is nonrenewable and the tractor reverts to Star at the end of the lease term. 4. The tractor has a six-year economic life. 5. Hateld has an excellent credit rating. 6. Star offers no warranty on the tractor other than the manufacturer's twoyear warranty that is handled directly with the manufacturer. 93. If Hatfield's incremental borrowing rate is l 1% and the implicit rate is not known to the lessee, what interest rate will Hateld use to account for this lease? A. 9% B. 10% C. 1 1% D. Cannot be determined from information given