Exercise 21-2 Pat Delaney Company leases an automobile with a fair value of $11,274 from John Simon Motors, Inc., on the following terms 1. Noncancelable term of 58 months. 2. Rental of $230 per month (at end of each month). (The present value at 1% per month is $10,085) 3. Estimated residual value after 58 months is $1,040. (The present value at 1% per month is $584.) Delaney Company guarantees the residual value of $1,040. 4. Estimated economic life of the automobile is 64 months 5. Delaney Company's incremental borrowing rate is 12% a year (1% a month. Simon's mplict rateis unknown. What is the present value of the minimum lease payments? The present value of the minimum lease payments LINK TO TEXT (c) Record the lease on Delaney Company's books at the date of inception. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit