Culver Company leases an automobile with a fair value of $19,159 from John Simon Motors, Inc., on the following terms: 1. Noncancelable term of 50 months. 2. Rental of $450 per month (at end of each month). (The present value at 1% per month is $17,639.) 3. Estimated residual value after 50 months is $1,240. (The present value at 1% per month is $754.) Culver Company guarantees the residual value of $1,240. 4. Estimated economic life of the automobile is 60 months. 5. Culver Companys incremental borrowing rate is 12% a year (1% a month). Simons implicit rate is unknown.

How do I calculate and record first months lease payment