On January 1,2025, Cullumber, Inc signs a 10-year noncancelable lease agreement to lease a storage building from Martinez Warehouse Company. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yetto be incurred by the lessor. The following information pertains to this lease agreement. (a) The agreement requires equal rental payments at the beginning each year. (b) The fair value of the building on January 1,2025 is $6050000; however, the book value to Holt is $5000000. (c) The building has an estimated economic life of 10 years, with no residual value. Cullumber depreciates similar buildings using the straight-line method: (d) At the termination of the lease, the title to the building will be transferred to the lessee. (c) Cullumber's incremental borrowing rate is 12% per year. Martinez Warehouse Co. set the annual rental to ensure a 8% rate of retum. The implicit rate of the lessor is known by Cullumber, inc. (f) In addition to the payments for the use of the leased asset, the lessor also requires the lessee to pay a yearly payment of $15100 of exccutocy costs related to tares on the property. Click here to view factor tables. Culturiber, Would record amortization expense on this asset in 2025 of (Round foctor value colculation to 5 decimal places, es, 1.25124) $500000. $615943. 50 . $924199