The following facts are for a non-cancellable lease agreement between Pharoah Corporation and Russell Corporation, a lessee: July 1, 2020 $ 20,44246 Inreption di te Annual lease payment due at the beginning of each year, starting July 1, 2020 Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell $ 4,200.00 5 years Lease term 10 years Economic life of leased equipment $ 47,400.00 Lessor's cost 89.400.00 9% Fair value of asset at July 1, 2020 Lessor's implicit rate lessee's incremental borrowing rate 9% The collectibility of the lease payments is reasonably predictable and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Pharoah use IFRS 16. Annual Lease Payment Plus CPC Reduction of Lease Obligation Interest (9%) on Unpaid Obligation Date Balat of Le Obliga $ 7/1/20 7/1/20 $ $ 7/1/21 $ 7/1/22 7/1/23 7/1/24 6/30/25 $ $ GA Interest (9%) on Unpaid Obligation Reduction of Lease Obligation Balance of Lease Obligation $ $ $ $