Homework Question 2 of 3 < Current Attempt in Progress -/1 Lewis Corporation entered into a lease agreement on January 1, 2020, to provide Dawkins Company with a piece of machinery. The terms of the lease agreement were as follows. 1. The lease is to be for 3 years with rental payments of $10.521 to be made at the beginning of each year. 2. The machinery has a fair value of $55,000, a book value of $40,000, and an economic life of 8 years. 3. At the end of the lease term, both parties expect the machinery to have a residual value of $30,000, none of which is guaranteed. 4. The lease does not transfer ownership at the end of the lease term, does not have a bargain purchase option, and the asset is not of a specialized nature. 5. The implicit rate is 6%, which is known by Dawkins. 6. Collectibility of the payments is probable.