Scupper Farms, the lessee, and Tymel Equipment, the lesser, sign a lease t agreement on January 1,2016, that peevides for Scupper to lease a cuftivator fom T rrell The lease tems, provwisions, and other related events ane as tolows The lease is noncanceable and has a term of 6 years The annual rentals are 556,100 (iecluding executory cootsL paryable at the beginning of each year Tynel agrees to pay aileecutory costs, which are expecded to be $1,100 annually, ncuding property taxes of $500, nsurance of $350, and maintenance of $250 The cufivator has an estimated economic e of &years Scapper quasantees a residual value of $60.000 atl the ond of 6 yeans . The merest rate rold n inase is ta, which is known by Sapper Soppe's boermental The cost and tair value of the cutivator to Tysrel is 5271,154 6 The lesor incurs no materal infial derect conts . The colectbility of the rentais is reasonably assured and there are no important uncertanies yet to be incurted by the ss borrowing rate s 15%, and r uses he turned therear40te method taaecord depreciation on siir eapnet surroundng the amount of unveimbursable costs Scupper Farms, the lessee, and Tymel Equipment, the lesser, sign a lease t agreement on January 1,2016, that peevides for Scupper to lease a cuftivator fom T rrell The lease tems, provwisions, and other related events ane as tolows The lease is noncanceable and has a term of 6 years The annual rentals are 556,100 (iecluding executory cootsL paryable at the beginning of each year Tynel agrees to pay aileecutory costs, which are expecded to be $1,100 annually, ncuding property taxes of $500, nsurance of $350, and maintenance of $250 The cufivator has an estimated economic e of &years Scapper quasantees a residual value of $60.000 atl the ond of 6 yeans . The merest rate rold n inase is ta, which is known by Sapper Soppe's boermental The cost and tair value of the cutivator to Tysrel is 5271,154 6 The lesor incurs no materal infial derect conts . The colectbility of the rentais is reasonably assured and there are no important uncertanies yet to be incurted by the ss borrowing rate s 15%, and r uses he turned therear40te method taaecord depreciation on siir eapnet surroundng the amount of unveimbursable costs