Problem 21-1 Cullumber Leasing Company agrees to lease machinery to Riverbed Corporation on January 1, 2017. The following information relates to the lease agreement 1. The term of the lease is 7 years with no renewal option, and the machinery has an 2. The cost of the machinery is $575,000, and the fair value of the asset on January 1, 2017, 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual 4. The lease agreement requires equal annual rental payments, beginning on January 1, 5. The collectibility of the lease payments is reasonably predictable, and there are no 6. Cullumber desires a 9% rate of return on its investments. Riverbed's incremental borrowing estimated economic life of 9 years is $755,000 value of $103,000. Riverbed depreciates all of its equipment on a straight-line basis 2017. important uncertainties surrounding the amount of costs yet to be incurred by the lessor. rate is 10%, and the lessor's implicit rate is unknown (Assume the accounting period ends on December 31.) ere tables Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Annual rental payment INK Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Present value of minimum lease payments IN