Calculate quarterly lease payments by using the PMT function in excel.

1- Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $2,940,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2018 Lease Description Quarterly lease payments Lease term No residual value; no purchase option Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing rate Fair value of asset 5 years (20 quarters) 5 years 16% $2,940,000 Required: How should this lease be classified by Mid-South Urologists Group and by Physicians Leasing? Calculate the quarterly lease payment (beginning on January 1) for the lease? Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second lease payment on April 1, 2018 Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $2.5 million Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2018. 2- 3 4