Problem 21-6 (Part Level Submission) The following facts pertain to a noncancelable lease agreement between Faldo Leasing Company and Vance Company, a lessee. Inception date Annual lease payment due at the beginning of January 1, 2014 $118,652 $67,000 each year, beginning with January 1, 2014 Residual value of equipment at end of lease term, guaranteed by the lessee Lease term Economic life of leased equipment Fair value of asset at January 1, 2014 Lessor's implicit rate 6 years 6 years $593,000 11% 11% rowing rate $67,000 The lessee assumes responsibility for all executory costs, which are expected to amount to $5,150 per year, The asset will revert to the lessor at the end of the lease term, The lessee has guaranteed the lessor a residual value of $67,000. The lessee uses the straight-line depreciation methad for all equipment. The les costs n method for