Problem 21-1 Culumber Leasing Compeny agrees to lease machinery to Riverbed Corporation on anuary 1, 2017. The following information reletes to the lease agreement. 1. The term of the lease is 7 years with no renewel option, and the mechinery has an estimated economic life of 9 years. 2 The cost of the machinery is $489,000, and the fair value of the asset on January 1, 2017, is S699.000. 3. At the end of the lease term, the asset reverts to the lessor and has guaranteed residual value of S94,000. Riverbed depreciates all of its equipment sis. 4 The leese egreement requires equel annual rental payments, beginning on )anuary 1, 2017 S. The collectibility of the lease payments is reasonably predictable, and there are no important uncertaintics surrounding the amount of coats yet to be incurred by the lessor. 6. Cullumber desires 996 rate of return on its investments. Riebed's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. on a straight-line ba important n0 d the Assume the accounting period ends on December 31. Click here to view factor tables Calculato the amount of the annual rental payment required. (Round present value factor calcufations to 5 decimal places,.g 1.25124 and the final answer to O decimal places e.g. 58,971.) Annual rental payments SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT tne present o decimal pl (Round present to s decimal .g. 58,971.) Present value of minimum lease paymentss SHOW LIST OF ACCOUNTS