Exercise 21-2 Culver Company leases an automobile with a fair value of $18,494 from John Simon Motors, Inc., on the following terms: 1. Noncancelable term of 50 months. . Esnmate resiue maiue afer 5 mrontns in on:2 h eresetnt value at i pe month s 725,) Culver Company guarantees the residual value of $1.210. 3. Estimated residual value after 50 months is $1,210. (The present value at 1% per month is $736.) Culver Company guarantees the residual value of $1,210 4. Estimated economic life of the automobile is 60 months. 5. Culver Company's incremental borrowing rate is 12% a year (1% a month). Simon's implicit rate is unknown. What is the present value of the minimum lease payments? The present value of the minimum lease payments SHOW LIST OF ACCOUNTS LINK TO TEXT (c) Record the lease on Culver Company's books at the date of inception. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Account Titles and Explanation Debit Credit (d) Record the first month's depreciation on Culver Company's books (assume straight-line). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 15.) Account Titles and Explanation Debit Credit (e) Record the first month's lease payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 15.) Account Titles and Explanation Debit Credit