The following facts pertain to a non-cancelable lease agreement between Sunland Leasing Company and Splish Brothers Company. alessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 Bargain purchase option price at end of lease term $17.225.30 $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor's COST $55,000 Fair value of asset at May 1, 2020 $77.000 Lessor's implicit rate B Lesses incremental borrowing rate The collectibility of the case payments by Sunland is probable Annual Lease Payment Plus BPO Interest on Liability Reduction of Lease Liability Date 5/1/20 $ $ $ 5/1/20 I 5/1/21 5/1/22 5/1/23 5/1/24 4/30/25 st on lity Reduction of Lease Liability Lease Liability $ $ I S