On January $1,2024,$ Rick$$s Pawn Shop leased a truck from Corey Motors for a five$-$year period with an option to extend the lease for three years. Rick$$s had no significant economic incentive as of the beginning of the lease to exercise the three$-$year extension option. Annual lease payments are $$12,500$ due on December $31$ of each year, calculated by the lessor using a $5\%$ interest rate. The agreement is considered an operating lease.