Ch 21: Homework Problems 21 Na Assessment Player Ul Applica CL01-104-SAC Question 9 of 13 < > View Policies -/1 E Current Attempt in Progress Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Swifty Company. The following information relates to this agreement. Screen Shot 10-01-610 M 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years 2 The fair value of the asset at January 1, 2020, is $76,000. Screen She 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $7,000, none of which is guaranteed. 4. The agreement requires equal annual rental payments of $24,177.00 to the lessor, beginning on January 1, 2020. Screen Sh 5. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee. 6. Swifty uses the straight-line depreciation method for all equipment. Click here to view factor tables 0-607.09 PM aloc-2020 to record the lease agreement, the lease payments, and all expenses related to