On January 1, 2020, Kingbird Co. leased a building to Blossom Inc. The relevant information related to the lease is as follows. 1 2. 3 The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,500,000 (unguaranteed). The leased building has a cost of $3,000,000 and was purchased for cash on January 1, 2020. The building is depreciated on a straight line basis. Its estimated economiglife is 50 years with no salvage value. Lease payments are $250,000 per year and are made at the beginning of the year. Blossom has an incremental borrowing rate of 5%, and the rate implicit in the lease is unknown to Blossom Both the lessor and the lessee are on a calendar year basis. 4 5. 6 (To record cost of the building) (To record receipt of lease payment) To record the recognition of the revenue each period) (To record receipt of lease payment) > (To record the recognition of the revenue each period) A (To record depreciation expense on the leased asset)