Bryant leased equipment that had a retail cash selling price of $710,000 and a useful life of five years with no residual value.

Bryant leased equipment that had a retail cash selling price of $710,000 and a useful life of five years with no residual value. The lessor paid $585,000 to acquire the equipment and used an implicit rate of 8% when calculating annual lease payments of $164,652 beginning January 1, the beginning of the lease. Lease payments will be made January 1 each year of the lease. Incremental costs of consummating the lease transaction incurred by the lessor were $20,500.