On January 1, 2024, Cullumber Ltd. leased a machine from Oriole Equipment Ltd. The machine had cost Oriole $418,600 to manufacture, and would normally have sold for about $598,000. The lease was for 10 years and requires equal monthly payments of $6,620, which reflect an annual interest rate of 8%. While the machine is expected to have a total useful life of 12 years, Cullumber's management plans to return it to Oriole at the end of the 10-year lease. Cullumber's management has also determined that the present value of the minimum lease payments was $545,630 at the time the lease was entered into.