Question 7 of 10 -/15 1. View Policies Current Attempt in Progress Cullumber Company leases a building to Marin, Inc. on January 1, 2020. The following facts pertain to the lease agreement. The lease term is 6 years, with equal annual rental payments of $6,295 at the beginning of each year. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. The building has a fair value of $36,000, a book value to Cullumber of $29,000, and a useful life of 7 years. 4. At the end of the lease term, Cullumber and Marin expect there to be an unguaranteed residual value of $7.250. 5. Cullumber wants to earn a return of 8% on the lease, and collectibility of the payments is probable. Marin was unaware of the implicit rate used in the lease by Cullumber and has an incremental borrowing rate of 9%. 2. 3. 5. Click here to view factor tables. How would Cullumber (lessor) and Marin (lessee) classify this lease? lease. Cullumber would classify the lease as a Marin would classify the lease as a lease. How would Cullumber initially measure the lease receivable, and how would Marin initially measure the lease liability and right-of- use asset? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, eg. 5,275.) Cullumber Lease receivable Present value of lease pay Marin Lease Liability/Right-of-Use Asset