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 (g) x Your answer is incorrect. Try again. Suppose that instead of $1,500, Kingbird expects the residual value to be only $500 (the guaranteed amount is still $1,500). How does the calculation of the present value of the lease payments change from part (b)? (Round answer to 0 decimal places, e.g. 5,275.) PV of lease payments EX 12697 Click if you would like to Show Work for this question: Open Show Workv 0') Your answer is correct. What is the present value of the lease payments to determine the lease liability? (Round answer to a decimal places, e.g. 5,275.) Present value of the lease payments $ 14195