Leases Jordan Inc. has entered into a lease agreement with MKG Leasing Co. to lease some specialized manufacturing equipment. The terms of the lease are as follows: The lease is for 5 years commencing January 1, 2020. Jordan must pay MKG 51,604 on January 1 of each year, beginning in 2020. Equipment of this type normally has an economic life of 6 years. The equipment has an unguaranteed residual value of 15,000. MKG has concluded, based on its review of Jordan's financial statements, that there is no unusual credit risk in this situation. MKG will not incur any further costs about this lease. MKG purchases this equipment directly from the manufacturer at a cost of 199,625, and normally sells the equipment for 241,625. Jordan's borrowing rate is 7