Complete the following for Metlock Company

Current Attempt in Progress Metlock Company leases an automobile with a fair value of $11,858 from Michael Motors, Inc., on the following terms. 1. 2. 3. 4. 5. Non-cancelable term of 50 months. Rental of $240 per month (at the beginning of each month). (The present value at 0.5% per month is $10,647.) Metlock guarantees a residual value of $1,240 (the present value at 0.5% per month is $966). Metlock expects the probable residual value to be $1,240 at the end of the lease term. Estimated economic life of the automobile is 60 months. Metlock's incremental borrowing rate is 6% a year (0.50% a month). Michael's implicit rate is unknown. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. What is the nature of this lease to Metlock? The nature of this lease is a/an finance eTextbook and Media List of Accounts (b) Your answer is incorrect. lease. Attempts: 1 of 5 used What is the present value of the lease payments to determine the lease liability? (Round answer to O decimal places, e.g. 5,275.) Present value of the lease payments eTextbook and Media List of Accounts Save for Later X Your answer is incorrect. 12776 Attempts: 3 of 5 used Submit Answer Based on the original fact pattern, record the lease on Metlock's books at the date of commencement. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Lease Expense Cash eTextbook and Media List of Accounts Save for Later (d) Debit 240 Credit 240 Attempts: 1 of 5 used Submit Answer Record the first month's lease payment (at commencement of the lease). (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: Oof 5 used Submit Answer Record the second month's lease payment. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: Oof 5 used Submit Answer Record the first month's amortization on Metlock's books (assume straight-line). (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Your answer is incorrect. Debit Credit Attempts: Oof 5 used Submit Answer Suppose that instead of $1,240, Metlock expects the residual value to be only $500 (the guaranteed amount is still $1,240). How does the calculation of the present value of the lease payments change from part (b)? (Round answer to O decimal places, e.g. 5,275.) PV of lease payments