Leewin Brokerage enters into a lease agreement with Bumble Molors to lease an automoble with a far value of 377,000 under a 5 - yoar laase on December 20,2022 . The ibase commencos on January 1, 2023, and Leewin wit retum the automoblle to Bumble on Docember 31,2027 . The automobile has an estimated usefut life of 7 years. Leemin made a iense payment of $10.500 on December 20, 2022. In addition, the loase agreement stpulates annual payments of $10,500, due on January 1 of 2023, 2024, 2025, 2026, and 2027. The implicit rade of the lease is 8% and is known by Leewn. There is no purchase option, no leaso incentives, no residual value guarantees, and no transfer of ownership, Leewin incurs incial drect costs of 31,200 . Compute the present value of the loase payments in order to delermine if the lease meets the fourth Group l criterion. Calculate the present value of each payment indidduafy. Assuming that the in classified as an operating leaso, what is the value of the night - of - use asset at the loase's commencement? Leewin Brokerage enters into a lease agreement with Bumble Motors to lease an automobile with a fair value of 579,000 under a 5 - year loase on December 20,2022 . The leswe oommences on. January 1, 2023, and Leewin wil retum the automobile lo Bumble on December 31,2027 . The automobile has an estimated usaful lifo of 7 years. Leewin made a iease payment of 5io,060 on December 20, 2022. In addition, the lease agreement stipulates annual payments of $10,000, due on January 1 of 2023, 2024, 2025, 2026, and 2027 . The implicit rate of the iase is f6\% and is known by Loewin. There is no purchase option, no lease incentives, no residual value guaranteos, and no transfer of ownerahip. Leerinin incurs initial diroct costs of 51, goo: In addison to the information provided above, assume that Bumble provided a $5,400 incentive. Assuming that this is classified as an operating lease, what is the arnual inase oxponse roported on the income statement? A. $11,300 B. $11,900 C. $10.000 D. $12,380