Recording Sales-Type Lease, Purchase Option-Lessor Flint Company leased equipment to Land Company for a five-year period. Flint paid \$112,716 for the equipment, which equals its current carrying value (with estimated useful life of five years). The lease commenced on January 1 of Year 1 . Flint uses a target rate of return of 8% in all lease contracts. The first payment was received on January 1 of Year 1, and Flint's accounting periods end on December 31. The lease contract contains a purchase option stating that Land Company can purchase the equipment for $9,600 on January 1 of Year 6 , at which time its residual value is estimated to be $15,600. It is reasonably certain that Land Company will exercise the purchase option at the end of the lease term. a. Compute the annual payment calculated by the lessor. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your