On laniary 1,2021 Piroah ine sigtsa 10 vear noecancelable leate a eecment to leate a storage bulling fram Hae Warefouse to be incured by the lesor. The following information peitalen to this leae agecent. 4) The agreevent requires equal fental poyrents at the beginning eado year. ic The bulding has an estimated exncomic life of 1 years, with noresid al value, Praroaf depreciates simiar haltings ising the strabie tine rethod. af M the ferminatien of the lease, the titio to the buiding wie to trankered to the keiee. inglet rale of the lesioe an krwwity pharoah, the. Clik here te verwfacter tatirs. 4)142? tin282 14472 4+78522 On January 1.2021, Pharoah, Inc, signs a 10-year noncancelable lease agreement to lease a storage building from Holt Warehouse Company. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to 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 1,2021 is $5600000; however, the book value to Holt is $4550000. (c) The building has an estimated economic life of 10 years, with no residual value. Pharoah 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. (e) Pharoah's incremental borrowing rate is 11% per year. Holt Warehouse Co. set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by Pharoah, Inc. (1) The yearly rental payment includes $14200 of executory costs related to taxes on the property. Click here to view factor tables. What is the annual lease paryment excluding executory costs? (Rounded to the nearest dollar.) $814322 $268522 $842722 $828522