On January $1,2023,$ Carla Vista Leasing Inc., a lessor that uses IFRS, signed an agreement with Rock River Inc., a lessee, for the use of a compression system. The system cost $$426,000$ and Carla Vista purchased it from Manufacturing Solutions Ltd$.$ specifically for Rock River. Annual payments are made each January $1$ by Rock River. In addition to making the lease payment, Rock River also reimburses Carla Vista $$4,700$ each January $1$ for a portion of the repairs and maintenance expenditures, which cost Carla Vista a total of $$6,300$ per year. At the end of the five$-$year agreement, the compression equipment will revert to Carla Vista and is expected to have a residual value of $$27,200,$ which is not guaranteed. Collectibility of the rentals is reasonably predictable, and there are no important uncertainties surrounding the costs that have not yet been incurred by Carla Vista.

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Assume that Carla Vista has a required rate of return of $9\%.$ Calculate the amount of the lease payments that would be needed to generate this return on the agreement if payments were made each: $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $2$ decimal places, e$.$g$.5,275.)$

January $1$

December $31$

The lease payments

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