On January 1, 2017, Jubilee Corp. leased equipment to Cobourg Ltd. The following information concerns this lease.

• The term of the non-cancellable lease is six years, with no renewal option.
• Equal rental payments are due on January 1 of each year, beginning in 2017.
• The equipment's fair value on January 1, 2017 is $144,000.
• Jubilee set the annual rental to ensure an 8% rate of return.

1. Assume that the equipment reverts to the lessor at the termination of the lease, at which time it is expected to have a residual value (not guaranteed) of $6,000, calculate the amount of the annual rental payment.
2. Assume that the lease has a bargain purchase option that allows Cobourg to purchase the equipment for $2,000 at the termination of the lease, calculate the amount of the annual rental payment.
3. Assume that Cobourg keeps the equipment at the termination of the lease, calculate the amount of the annual rental payment.