On January 1, 2023, Blossom Corp., which uses IFRS, signs a 10-year, non-cancellable lease agreement to lease a specialty lathe from Liu Inc. The following information concerns the lease agreement. 1. The agreement requires equal rental payments of $76,700 beginning on January 1,2023 . 2. The lathe's fair value on January 1,2023 , is $500,000. 3. The lathe has an estimated economic life of 12 years, with an unguaranteed residual value of $15,000. Blossom depreciates similar equipment using the straight-line method. 4. The lease is non-renewable. At the termination of the lease, the lathe reverts to the lessor. 5. Blossom's incremental borrowing rate is 10% per year. The lessor's implicit rate is not known by Blossom. 6. The yearly rental payment includes $2,724.82 of executory costs related to insurance on the lathe. P e. aces