Problem 21A-6 b-f (Part Level Submission) Ivanhoe Leasing Company agrees to lease equipment to Shamrock Corporation on January 1, 2017. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of years. 2. The cost of the machinery is $517,000, and the fair value of the asset on January 1, 2017, is $657,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $98,000. Shamrock estimates that the expected residual value at the end of the lease term will be 98,000. Shamrock amortizes all of its leased equipment on a straight line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2017 5. The collectibility of the lease payments is probable. 6. Ivanhoe desires a 10% rate of return on its investments. Shamrock's incremental borrowing rate is 11%, and the lessor's implicitrate is unknown (Assume the accounting period ends on December 31.) Click here to view factor tables Attempts: 1 of 15 used (c) x Your answer is incorrect. Try again. Compute the value of the lease liability to the lessee. (Round present value factor calculations to s decimal places, e.g. 1.25124 and the final as places e.g. 58,972.) Present value of minimum lease payments J 639782