Exercise 21-2 terms: 1. Noncancelable term of 50 months. 2. Rental of $290 per month (at end of each month). (The present value at 1% per month is $11,367.) 3. Estimated residual value after 50 months is $1,080. (The present value at 1% per month is $657.) Buffalo Company guarantees the residual value of $1,080. 4. Estimated economic life of the automobile is 60 months. 5, Buffalo Company's incremental borrowing rate is 12% a year (196 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 paymentss (c) Record the lease on Buffalo 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 O for the amounts.) Account Titles and Explanation Credit