Inception date Lease tern Economic life of leased equipment Fair value of asset at October 12017 Residual valae at end of lease tr Lessor's immplicit rate Lessee's incremental Annual lease payment due at the beginning of each year, begeinning October 1, 2017 30,500 October 1,2017 6 years $150,690 The collectibuliey of the lease payments is reasonably peredictable, and there are so important uncertainties about costs that have not yet been incurred by the lessor McKee Electronics Ltd the lessee, assames responsibility for all repairs and maintenance costs, which amount to $2,500 per year and are to be paid each October 1, beginning October 1, 2017, by the lessee directly to the suppliers. The asset will revert to the lessor at the end of the lease term The straight-lime depreciation method is used for all equipment. The following amortization schedule for the lease obligation has been prepared correctly for use by both the lessor and the lessee in accousted for properly as a capital lease by the lessee and as a direct financing lease by the lesso accounting for this lease using ASPE. The lease is