Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2011. Edison purchased the equipment from International Machines at a cost of $117,590. Related Information: Lease term: 2 years (8 quarterly periods) Quarterly rental payments: $16,000 at the beginning of each period Economic life of asset: 2 years Fair value of asset: $117,590 Implicit interest rate: 10% (Also lessee