At the beginning of current year, lessee company leased a machinery with the following information: annual rental payable at the end of each year 1,000,000 payment to lessor to obtain a long-term lease 300,000 cost of dismantling and restoring the asset as required by contract at present value 330,000 annual executory cost paid by lessee 50,000 lease term 4 years useful life of machinery 8 years implicit interest rate 10% present value of an ordinary annuity of 1 at 10% for 4 periods 3.17 the contract of lease provides for neither a transfer of title nor a purchase option