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Studddio inc, leases a piano from Dr. Piano, a piano sales, lease, and repair company. The lease term is for 5 years, and 5 tudddio must make frve annial rent payments of $4.500, beginning on lease commencement and at the start of every year afterward. The present value of these payments is $20,000. The fair value of the niano is $45.000 and the giano has a useful life of 30 years. The piano is not specialized in nature, the contract does not convey ownership of the piano to Studddio at the end of the lease term, and Studddio does not have an option to purchase the piano. Studddio prepaid half of the first year's rent on the date the lease was executed, which was prior to the lease coenmencement date. Studddio paid an insurance compary $ poo to guarantee the residual value of the piano, Studddio treated this payment as initial direct costs