On January 1, 2020, Metlock Co. leased a building to Ivanhoe Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $3,000,000 (unguaranteed). 2. The leased building has a cost of $3,500,000 and was purchased for cash on January 1, 2020. 3. 4. 5. 4 5 6 The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. Lease payments are $270,000 per year and are made at the beginning of the year. 6. Ivanhoe has an incremental borrowing rate of 9%, and the rate implicit in the lease is unknown to Ivanhoe. Both the lessor and the lessee are on a calendar-year basis. Click here to view factor tables. (For calculation purposes use 5 decimal places as displayed in the factor table provided