Laura Leasing Company signs an agreement on January 1, 2025, to lease equipment to Plote Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2025, is $80,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $10,000, none of which is guaranteed. 4. The agreement requires equal annual rental payments of $24,638.87 to the lessor, beginning on January 1, 2025. 5. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee. 6. Plote uses the straight-line depreciation method for all equipment. (To record the lease) (To record lease liability) a