The following facts pertain to a non-cancelable lease agreement between Pharoah Leasing and Shamrock Group, a lessee (amounts in thousands). Commencement date May 1, 2022 Annual lease payment due at the beginning of each year, beginning with May 1, 2022 25,385.22 Bargain purchase option price at end of lease term 4,960 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost 80,600 Fair value of asset at May 1, 2022 112,840 Lessor's implicit rate 8 % Lessee's incremental borrowing rate 8 % The collectibility of the lease payments by Pharoah is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)