Windsor Corporation ("Windsor") manufactures equipment with an estimated economic life of 13 years. On May 30, 2020, Windsor leases it to Gadget Corporation ("Gadget") for a period of 10 years. Assume both companies follow ASPE. Details of the lease are as follows:

		Equipment has a fair value and cost at the inception of the lease: $204,841.
		Guaranteed residual value: $22,000.
		Annual lease payment, due at beginning of each year: $31,250.
		Lease contains no renewal options and the equipment reverts to Windsor at the end of the lease.
		Gadget's incremental interest rate, as well as implicit rate is 12%.
		Gadget uses straight-line amortization for similar equipment that it owns.
		Windsor has determined that collectibility of lease payments is reasonably predictable and that no additional costs will be incurred.