Question 1 Splish Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to Blossom Airlines for a period of 10 years. The normal selling price of the equipment is $280,398, and its unguaranteed residual value at the end of the lease term is estimated to be $20,300. Blossom will pay annual payments of $41,800 at the beginning of each year. Splish incurred costs of $175,000 in manufacturing the equipment and $3,600 in sales commissions in closing the lease. Splish has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 1 1%. Blossom Arines has an incremental borrowing rate of 11 Click here to view the factor table compute the a e0. 58,971) to the initial lease liability (Round present value factor cal o lations to 5 deci al places, e g. 1.251 24 and the final ans er t decimal places The amount of the initial lease liability g