Culver Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $170,000. The terms of the lease are as follows: The lease term begins on January 1, 2019, and runs for 5 years. The lease requires payments of $37,396 at the beginning of each year starting January 1, 2019. At the end of the lease term, the equipment is to be returned to the lessor. Lantus' implied interest rate is 5%, while Culver's borrowing rate is 6%. Culver uses straight-line depreciation for similar equipment. The year-end for both companies is December 31. Assume that both companies follow ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Determine the present value of the minimum lease payments. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Present Value Prepare Culver's lease amortization schedule using the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Payment Interest Principal Balance 170000 S 37396 132604 Date January 1, 2019 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023 170000 Prepare the 2019 journal entries for Culver Limited. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit Date 2019 Jan. 1 170000 170000 (To record inception of lease.) Jan. 1 Cash (To record lease payment.) Interest Expense Dec 31 (To record interest.) Dec 31 (To record depreciation expense.)