Question 1 On January 1, 2017, Kingbird Co. leased a building to Blossom Corp. The relevant information related to the lease is as follows. 1 The lease arrangement is for S years. The building is expected to have a residual value at the end of the lease of $1,680 000 (unguaranteed) 2. The leased building has a cost of $1,800,000 and was purchased for cash on January 1, 2017, 3. The building is depreciated on a straight-line basis. Its estimated economic life is 30 years with no salvage value. 4. Lease payments are $250,000 per year and are made at the beginning of the year. 5, Blossom has an incremental borrowing rate of 7%, and the rate implicit in the lease is unknown to Blossom. 6. Both Kingbird and Blossom are on a calendar-year basis. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)