Waterway Leasing Company agrees to lease equipment to Wildhorse Corporation on January 1, 2020. The following information relates to the lease agreement.

1.		The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.
2.		The cost of the machinery is $507,000, and the fair value of the asset on January 1, 2020, is $690,000.
3.		At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $45,000. Wildhorse estimates that the expected residual value at the end of the lease term will be 45,000. Wildhorse amortizes all of its leased equipment on a straight-line basis.
4.		The lease agreement requires equal annual rental payments, beginning on January 1, 2020.
5.		The collectibility of the lease payments is probable.
6.		Waterway desires a 10% rate of return on its investments. Wildhorses incremental borrowing rate is 11%, and the lessors implicit rate is unknown.

(Assume the accounting period ends on December 31.)

Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.)