Question 9 of 11 < > View Policies Show Attempt History Current Attempt in Progress 3.43/5 The following facts pertain to a non-cancelable lease agreement between Skysong Leasing Company and Sheridan Company, a lessee. Commencement date Annual lease payment due at the beginning of May 1, 2020 each year, beginning with May 1, 2020 $17,865.02 Bargain purchase option price at end of lease term $7,000 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $65,000 Fair value of asset at May 1, 2020 $85,000 Lessor's implicit rate 6 % Lessee's incremental borrowing rate 6 % The collectibility of the lease payments by Skysong is probable. Click here to view factor tables. !!! E