Exercise 21-03 (Part Level Submission) Kingbird Company leases an automobile with a fair value of $15,671 from John Simon Motors, Inc., on the following terms: Non-cancelable term of 50 months. Rental of $320 per month (at the beginning of each month). Kingbird guarantees a residual value of $1,500. Delaney expects the probable residual value to be $1,500 at the end of the lease term. Estimated economic life of the automobile is 60 months. Kingbird's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. 9":\"9'5'1' Click here to View factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) '7 (a) Your answer is correct. What is the nature of this lease to Kingbird? The nature of this lease is a/an lease. Click if you would like to Show Work for this question: Open Show Work Your answer is partially correct. Try again. Record the first month's amortization on Kingbird's books (assume straight-line). (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.25.) Account Titles and Explanation Debit Credit V Amortization Expense 254 Right-of-Use Asset 254 Click if you would like to Show Work for this question: Open Show Work