Sandhill Leasing Corporation, which uses IFRS, signs a lease agreement on January 1,2023 , to lease electronic equipment to Wai Corporation, which also uses IFRS. The term of the non-cancellable lease is two years and payments are required at the end of each year. The following information relates to this agreement. 1. Wai has the option to purchase the equipment for $12,200 on the termination of the lease, and this option is reasonably certain to be exercised. 2. The equipment has a cost and fair value of $160,000 to Sandhill Leasing. The useful economic life is two years, with a residual value of $12,200. 3. Wai is required to pay $5,600 each year to the lessor for insurance costs. 4. Sandhill Leasing wants to earn a return of 10% on its investment. 5. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs that have not yet been incurred by the lessor. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Using (1) time value of money tables, (2) a financial calculator, or (3) Excel functions, calculate the lease payment that Sandhill Leasing would require from Wai. (Hint: You may find the ROUND formula helpful for rounding in Excel.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 52.75.) Lease payments $