On January 1, 2023, Marigold Ltd. entered into an agreement to lease a truck from Cullumber Ltd. Both Marigold and Cullumber use IFRS. The details of the agreement are as follows: Carrying value of truck for Cullumber Fair value of truck Economic life of truck Lease term Rental payments (at beginning of each month) Executory costs included in rental payments each month for insurance Incremental borrowing rate for Marigold Marigold expects to pay Cullumber $3,630 under a residual value guarantee for the truck. Additional information: 1. 2. 3. 4. 5. $19,870 $19,870 5 years 3 years $590 $20 12% There are no abnormal risks associated with the collection of lease payments from Marigold. There are no additional unreimbursable costs to be incurred by Cullumber in connection with the leased truck. At the end of the lease term, Cullumber sold the truck to a third party for $3,370, which was the truck's fair value at December 31, 2025. Marigold paid Cullumber the difference between the residual value guarantee of $3,630 and the proceeds obtained on the resale. Marigold knows the interest rate that is implicit in the lease. Marigold knows the amount of executory costs included in the minimum lease payments.