Answer A and B please. You will need to use the present value tables.

Exercise 21-4 Castle Leasing Company signs a lease agreement on January 1, 2014, to lease dlectronic equipment to Jan Way Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement 1. Jan Way has the option to purchase the equipment for $16,810 upon termination of the le 2. The equipment has a cost and fair value of $166,500 to Castle Leasing Company. The useful economic life is 2 years, with a salvege value of $16,810 3 lan way Company is required to pay $5,130 each year to the lessor for eecutory costs. 4. Castle Leasing Company deres to earn a return of 10% on its investment. S. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessoc