Argyle Ltd$.$ signed a $24-$month lease to rent a new computer for $$140$ per month. The fair value of the computer is $$2,700.$ The lease will commence on $1$ November $20$X$1$ with payments beginning immediately. Assume that Argyle Ltd$.$s IBR is $0\mathrm{.}6\%$ per month. Argyle is unaware of the implicit rate in the lease. $($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1-$a$.$ Is Argyle Ltd$.$ able to account for this lease as a low$-$value lease?

multiple choice $1$

Yes

No

$1-$b$.$ What journal entry would be recorded for this lease? $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$2-$a$.$ Argyle Ltd$.$ is able to find a used computer for $$90$ per month instead of having to pay $$140$ per month. The fair value of the asset in its current condition is $$1,700$ but when new, the computer costs slightly over $$5,800.$ Is Argyle Ltd$.$ able to account for this lease as a low$-$value lease?

multiple choice $2$

Yes

No

$2-$b$.$ What journal entry would be recorded for this lease? $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your final answers to the nearest whole dollar amount.$)$