On January 1, 2020, Parker Company signed a 10-year noncancelable lease agreement to lease a storage building from Chili Equipment Company. The following information pertains to this lease agreement. a. Parker will pay equal rental payments at the beginning of each year. b. The fair value of the building on January 1, 2020 is $5,000,000; however, the book value to Chili is $4,125,000. c. The building has an estimated economic life of 10 years, with no residual value. Parker depreciates similar buildings on the straight-line method. d. At the termination of the lease, the title to the building will be transferred to the lessee. e. Parkers incremental borrowing rate is 11% per year. Chili Equipment Co. set the annual rental to ensure a 10% rate of return. The implicit rate of the lessor is known by Parker Company. What is the amount of the total annual lease payment? Assume that the PV factor for an annuity due of 10 periods at 10% is 6.75902 and the PV factor for an annuity due of 10 periods at 11% is 6.53705.