Hi, please help with part a! Please provide the detailed solution of how you get this answer, and please answer the question follow the chart below. Thank you.

Exercise 21A-10 a-d (Part Level Submission) The following facts pertain to a non-cancelable lease agreement between Oriole Leasing Company and Sage Hill Company, a lessee. Commencement date Annual lease payment due at the beginning of May 1, 2017 each year, beginning with May 1, 2017 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate $17,225.30 $4,000 5 years 10 years $55,000 $77,000 8% 8% The collectibility of the lease payments by Oriole is probable. Click here to view the factor table (For calculation purposes, use 5 decimal places as displayed in te factor table provided.)