On january 1, 2018, robertson construction leased several items of equipment under a two-year operating lease agreement from jamison leasing, which routinely finances equipment for other firms at an annual interest rate of 5%. the contract calls for four rent payments of $59,000 each, payable semiannually on june 30 and december 31 each year. the equipment was acquired by jamison leasing at a cost of $393,000 and was expected to have a useful life of six years with no residual value. both firms record amortization and depreciation semi-annually.