One Republic Company leased equipment to Maps Company on January 1, 2016. The lease term is for a four-year period. The annual lease payments must be made on January 1 of each year, with the first payment due on January 1, 2016. Additional information relating to the lease is as follows: The cost of equipment to One Republic was $70,000, and the normal selling price for this type of equipment is $110,000. One Republic requires a 10% rate of retum on its investments, so this is the interest rate used to calculate the annual lease payments. The lease contains a bargain purchase option. On December 31, 2019, the lessee may acquire the equipment for $4,000. The equipment has an expected economic life of six years. The residual value of the equipment at that time is estimated to be $1,000. The collectability of the lease payments is reasonfibly assured, and there are no important uncertainties surrounding the amount of unreimbursable cossts yet to be incurred by the lessor. One Republic Company leased equipment to Maps Company on January 1, 2016. The lease term is for a four-year period. The annual lease payments must be made on January 1 of each year, with the first payment due on January 1, 2016. Additional information relating to the lease is as follows: The cost of equipment to One Republic was $70,000, and the normal selling price for this type of equipment is $110,000. One Republic requires a 10% rate of retum on its investments, so this is the interest rate used to calculate the annual lease payments. The lease contains a bargain purchase option. On December 31, 2019, the lessee may acquire the equipment for $4,000. The equipment has an expected economic life of six years. The residual value of the equipment at that time is estimated to be $1,000. The collectability of the lease payments is reasonfibly assured, and there are no important uncertainties surrounding the amount of unreimbursable cossts yet to be incurred by the lessor