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In: AccountingBonita Leasing Company signs a lease agreement on January 1,2017, to lease electronic equipment to...Bonita Leasing Company signs a lease agreement on January 1,2017, to lease electronic equipment to Windsor Company. The term ofthe noncancelable lease is 2 years, and payments are required atthe end of each year. The following information relates to thisagreement: 1. Windsor Company has the option to purchase theequipment for $17,100 upon termination of the lease. 2. Theequipment has a cost and fair value of $166,000 to Bonita LeasingCompany. The useful economic life is 2 years, with a salvage valueof $17,100. 3. Windsor Company is required to pay $4,900 each yearto the lessor for executory costs. 4. Bonita Leasing Companydesires to earn a return of 10% on its investment. 5.Collectibility of the payments is reasonably predictable, and thereare no important uncertainties surrounding the costs yet to beincurred by the lessor.