On January 1, 2020, Cullumber Company leased equipment to Daylight Corporation. The following information pertains to this lease. 1 2 3. The term of the non-cancelable lease is 4 years. At the end of the lease term. Daylight has the option to purchase the equipment for $2,000, while the expected residual value at the end of the lease is $15.000 Equal rental payments are due on January 1 of each year, beginning in 2020 The fair value of the equipment on January 1, 2020, is $217,000, and its cost is $192.000, The equipment has an economic life of 5 years. Daylight depreciates all of its equipment on a straight-line basis Cullumber set the annual rental to ensure a 4% rate of return, Daylight's incremental borrowing rate is 5% and the implicit rate of the lessor is unknown Collectibility of lease payments by the lessor is probable 5 6 Both the lessor and the lessee's accounting periods end on December 31 Calculate the amount of the annual rental payment. (Round answer to decimal places, es, 5,275.) Annual rental payment $