Marin Leasing Company agrees to lease equipment to Headland Corporation on January 1, 2025. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $483,000, and the fair value of the asset on January 1,2025 , is $757,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $55,000. Headland estimates that the expected residual value at the end of the lease term will be $55,000. Headland amortizes all of its leased equipment on a straight-line basis. 4. The lease agreernent requires equal annual rental payments, beginning on January 1, 2025. 5. The collectibility of the lease payments is probable. 6. Marin desires a 10% rate of return on its investments. Headland's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. (Assume the accounting period ends on December 31.) Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, es. 1.25124 and the final answer to 0 decimal places eg. 58,972 .) Annual rental payment