Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $1,940,000 and leased it to Mid- South Urologists Group, Inc., on January 1, 2016. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease Description Quarterly lease payments Lease term No residual value; no BPO Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing rate Fair value of asset $116,318-beginning of each period 5 years (20 quarters) 8% $1,940,000