On January $1,2023,$ Cullumber Ltd$.$ signs an $8-$year non$-$cancellable lease agreement to lease a storage building from Hyde Inc. Hyde is

in the business of leasing$/$selling property. Collectibility of the lease payments is reasonably assured and no additional costs are to be

incurred by the lessor $($other than executory costs$).$ Both the lessor and the lessee are private corporations adhering to ASPE. The

following information is available regarding this lease agreement:

The agreement requires equal payments at the end of each year.

At January $1,2023,$ the fair value of the building is $$1358000$ and Hyde's book value is $$1123000.$

The building has an estimated economic life of $8$ years, with no residual value. Cullumber uses straight$-$line depreciation for all

its depreciable assets.

At the termination of the lease, title to the building will transfer to the lessee.

Cullumber's incremental borrowing rate is $10\%.$ Hyde Inc. set the annual rental to ensure a $9\%$ rate of return. The lessor's

implicit rate is known to Cullumber.

The yearly lease payment includes $$4800$ executory costs related to taxes on the property.

Click here to view the factor table.

Rounded to the nearest dollar, the amount of the minimum annual lease payment is $($Round present value factor calculations to $3$ decimal

places, e$.$g$.125\mathrm{.}124.)$

$$250148.$

$$245348.$

$$202891.$

$$240548.$