Exercise 21A-3 a-g Ddlaney Company leases an automcbile with a fair value of $10,00D from Ichn Simon Mators, Inc., on the follawing terns: L Non-cancelable term of 50 months 2. Rental of S200 per month (at the beginning of each month). (The present value at 0.5% per month is SB,B73.) 3- Delarey guarantees a residual value of $1,180 (the present walue at 0.5% per month i8 $920). Delaney expects the probable residual value to be $1,180 et the end of the lesse term 4. Estimated economic life of the sutormobile is 60 months 5. Delaney's inoemetal borrowing rate is o,s a year (0.2% Record the second month's lease payment Debit month). Simons implidt rate is unknown. Account Tritles and Explanationn What is the nature of this lease to Delaney? The nature of this lease is aan lease what the present value of the lease payments to determine the lease liability? Record the first month's amortization cn Delaney's bools (assume straight-inel Present value of the lease payments Debit Credit Account Itles and txplanation Based on the oriainal fact pattern, record the lease on elaney's bcoks at the date of commencement. Debit Credit Account Titles and Lxplanation Suppose that instead of $1,1E0, Delarey pects the residual value to be only SS00 (the guaranteed amount is stil s1,1BU). How dos the calculation of the present value of the lease payments change from part (b)7 FV of lease payments Recard the first month's lease payment (at commencement cf the lease). ( Debit Credit Account Titles and Explanation