Technoid Ltd$.$ sells computer systems. Technoid leases computers to Lone Star Company on January $1,2014.$ The manufacturing cost of the computers was $$12$ million.

This non$-$cancellable lease had the following terms:

Lease payments: $$2,466,754$ semiannually; first payment at January $1,2014$ ; remaining payments at June $30$ and December $31$ each year through June $30,2018.$

Lease term: $5$ years $(10$ semi$-$annual payments$)$

No residual value; no bargain purchase option

Economic life of equipment: $5$ years

Implicit interest rate and lessee's incremental borrowing rate: $5\%$ semi$-$annually

Fair value of the computers at January $1,2014$: $$20$ million

$\backslash$table$[[$Date$,$Payment,interest,Decrease in Discount,Carrying value$],[$Jan$-14,,,,20,000,000$