Pharoah Company on January 1, 2021, enters into a 9-year roncancelable lease for equipment having an estimated useful life of 10 years and a fair value to the lessor, Daly Corp, at the inception of the lease of $4,440,000. Pharoah's incremental borrowing rate is 8%. Pharoah uses the straight-line method to depreciate its assets. The lease contains the following provisions: Rental payments of $300,000 for property taxes, payable at the beginning of each six month period. An option allowing the lessor to extend the lease one year beyond the lease term A guarantee by Pharoah Company that Daly Corp. will realize $205.000 from selling the asset at the expiration of the lease. However, the actual residual value is expected to be $150,000 1 2 3. Click here to view factor tables, Your answer is correct What kind of lease is this to Pharoah Company? Finance Lease e Textbook and Media List of Accounts Attempts: 2 of 3 used (b) Your answer is correct. What should be considered the lease term The lease term 10 Your answer is correct. What should be considered the lease term? The lease term 10 years eTextbook and Media List of Accounts Attempts: 2 of 3 used (c) x Your answer is incorrect What is the present value of the lease payments (1) for classification of the lease and (2) for measurement of the lease liability? Round final answers to O decimal place, e.g. 5,432) $ 4051063 2 5 3957503