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. (6) The annual rental payment includes $3,000 of executory costs related to taxes on the property 20. What is the amount of the minimum annual lease payment, rounded to the nearest dollar? (a) $ 56,471 (b) $143,471 (c) $146,471. (d) $149,471 21. What is the amount of the total annual lease payment? (a) $ 56,471. (b) $143,471. (c) $146,471 (d) $149,471