Current Attempt in Progress Kingbird AG leases an automobile with a fair value of 27,576 from Simon Motors, on the following terms. 1. Non-cancelable term of 50 months. 2. Rental of 600 per month (at the beginning of each month). (The present value at 0.5% per month is 26,618.) 3. Kingbird guarantees a residual value of 1,040 (the present value at 0.5% per month is 421). Kingbird expects the probable residual value to be 1,040 at the end of the lease term. 4. Estimated economic life of the automobile is 60 months. 5. Kingbird's incremental borrowing rate is 6% a year (0.5% a month). Simon'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) X Your answer is incorrect. 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 27039 e Textbook and Media List of Accounts Save for Later Attempts: 1 of 3 used Submit