The following information is provided for an equipment leased by Lessee from Lessor. Lessee and Lessor both use IFRS. Inception Date of Lease January 01,2020 Annual Lease Payment (Due: Beginning of Year, Starting Jan 1, 2020) 21,500 Purchase option at of Lease Term 3,000 (Certain to be exercised by Lessee) 7 years 10 years Lease Term Economic Life of Leased Equipment Lessor's Cost Fair Value of Asset Lessor's implicit rate Lessee's incremental borrowing rate Salvage value at the end of economic life) 98,114 Same as present value of all future payments. 8%, known to Lessee Known to Lessee 7% 0