Skysong Leasing Company agrees to lease equipment to Concord Corporation on January 1,2025 . The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $485,000, and the fair value of the asset on January 1,2025 , is $687,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $60,000. Concord estimates that the expected residual value at the end of the lease term will be $60,000. Concord amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2025. 5. The collectibility of the lease payments is probable. 6. Skysong desires a 10% rate of return on its investments. Concord's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. (Assume the accounting period ends on December 31.) Click here to view factor tables. x Your answer is incorrect. Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Annual rental payment $ eTextbook and Media Assistance Used Solution List of Accounts Attempts: 5 of 5 used (c) Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Present value of minimum lease payments $