LESSEE INFORMATION FOR LEASE AGREEMENT (1) The agreement requires equal rental payments at the end of each year. (2) The fair market value of the building on January 1, 20X1 is $900,000. The book value to the lessor is $750,000. (3) The building has an estimated economic life of ten years, with no salvage value. The lessee depreciates similar buildings using the straight line method (4) At the termination of the lease, the title to the building will be transferred to the lessee. (5) The lessee's incremental borrowing rate is 11% per year. The lessor set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by the lessee. The annual rental payment includes $3,000 of executory costs related to taxes on the property. 24. The lessee would record amortization expense on this storage building in 20X1 of: (a) $ 0. (b) $ 75,000 $ 90,000 (d) $146,471. 25. If the lease were nonrenewable, there was no purchase option, title to the building does not pass to the lessee at termination of the lease and the lease were only for eight years, what type of lease would this be for the lessee? (a) Sales type lease (b) Direct financing lease. (c) Operating lease. (d) Finance lease