On January 1, 2020, Bonita Ltd. entered into an agreement to lease a truck from Swifty Ltd. Both Bonita and Swifty use IFRS 16. The details of the agreement are as follows: Carrying value of truck for Swifty Ltd. Fair value of truck Economic life of truck Lease term Rental payments (at beginning of each month) Executory costs included in rental payments each month for insurance Incremental borrowing rate for Bonita Ltd. $22,282 $22,282 5 years 3 years $675 $22 12% Bonita Ltd. expects to pay Swifty Ltd. $3,470 under a residual value guarantee for the truck Additional information: 1. There are no abnormal risks associated with the collection of lease payments from Bonita. There are no additional unreimbursable costs to be incurred by Swifty in connection with the leased truck 2. 3. At the end of the lease term, Swifty sold the truck to a third party for $3,130, which was the truck's fair value at December 31, 2022. Bonita paid Swifty the difference between the guaranteed residual value of $3,470 and the proceeds obtained on the resale. 4. Bonita knows the interest rate that is implicit in the lease. 5. Bonita knows the amount of executory costs included in the minimum lease payments. 6. Bonita uses straight-line depreciation for its trucks with the residual value guarantee of $3,470 for the leased truck.