Pharoah Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Sheridan Inc. The following information concerns the lease agreement. Inception date January 1, 2023 Lease term Fair value of equipment Jan. 1, 2023 Economic life of leased equipment Annual rental payments starting Jan. 1, 2023 Option to purchase at the end of the term 5 years $260,000 7 years $45,824 Depreciation method Residual value Pharoah's Incremental borrowing rate none Straight-line none 8% Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE