Zest Company, as lessee, enters into a lease agreement on January 1, 2018, to

lease equipment. The following data are relevant to the lease agreement.

- The term of the noncancellable lease is three years, with no renewal option.

- The fair value of the equipment on January 1, 2018 is $60,000. The

estimated residual value is $0.

- The equipment reverts back to the lessor at the termination of the lease.

- The lessor used an implicit rate of 4%.

Instructions:

-Calculate the required amount of the lease payments