Oriole Corp. is a manufacturer of truck trailers. On January 1, 2021, Oriole Corp. leases 9 trailers to Skysong Company under a 6-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1. 2. 3. Equal annual payments that are due on January 1 each year provide Oriole Corp. with an 15% return on net investment. Titles to the trailers pass to Skysong at the end of the lease. The fair value of each trailer is $51,800. The cost of each trailer to Oriole Corp. is $45,100. Each trailer has an expected useful life of nine years. 4. Collectibility of the lease payments is probable. Click here to view factor tables.