The following facts pertain to a noncancelable lease agreement between Flint Leasing Company and Buffalo Company, a lessee. Inception date: Annual lease payment due at the beginning of May 1, 2017 each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease term ease term Economic life of leased equipment essor's cost Fair value of asset at May 1, 2017 .essor's implicit rate Lessee's incremental borrowing rate $22,606.93 $4,400 5 years 10 years $65,000 $97,000 10% 10% The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the essor. The lessee assumes responsibility for all executory costs