Maker Corp. manufactures imaging equipment. Easy Leasing purchased an MRI machine from Maker for $960,000 and leased it to Imaging Group, Inc. on January 1, 2021. Lease description: Quarterly rental payments $ 74,200: beginning of each period Lease term 4 years (16 quarters) No residual value; no bargain purchase option Economic life of MRI machine 4 years Implicit interest rate and lessees incremental borrowing rate 12% Fair value of asset $ 960,000 Present value of an annuity