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Exercise 21A-3 a-g Sage Hill Company leases an automobile with a fair value of $12,257 from John Simon Motors, Inc., on the following terms 1.
Exercise 21A-3 a-g Sage Hill Company leases an automobile with a fair value of $12,257 from John Simon Motors, Inc., on the following terms 1. Non-cancelable term of 50 months. 2. Rental of $250 per month (at the beginning of each month). (The present value at 0.5% per month is $11,091.) 3. Sage Hill guarantees a residual value of $1,190 (the present value at 0.5% per month is S927), Delaney expects the probable residual value to be $1,190 at the end of the lease 4. Estimated economic life of the automobile is 60 months. 5. Sage Hill's incremental borrowing rate is 6% a year (0.5% a month), Simon's implicit rate is unknown. Click here to view t (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the nature of this lease to Sage Hill? The nature of this lease is a/an lease. SHOW LIST What is the present value of the lease payments to determine the lease liability(Round answer to O decimal places, e.g. 5,275.) Present value of the lease
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