Exercise 21A-3 a-g Splish Brothers Company leases an automobile with a fair value of $18,767 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months 2. Rental of $390 per month (at the beginning of each month). (The present value at 0.5% per month is $17.30 3. Splish Brothers guarantees a residual value of $1,410 (the present value at 0.5% per month is $1,099). Delaney expects the probable residual value to be $1,410 at 4. Estimated economic life of the automobile is 60 months. 5. Splish Brothers's incremental borrowing rate is 6% a year (0.5% a month), Simon's implicit rate is unknown. Click here to view the factor table. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) the end of the lease term. What is the nature of this lease to Splish Brothers? The nature of this lease is a/an lease 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 payments Exercise 21A-3 a-g Splish Brothers Company leases an automobile with a fair value of $18,767 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months 2. Rental of $390 per month (at the beginning of each month). (The present value at 0.5% per month is $17.30 3. Splish Brothers guarantees a residual value of $1,410 (the present value at 0.5% per month is $1,099). Delaney expects the probable residual value to be $1,410 at 4. Estimated economic life of the automobile is 60 months. 5. Splish Brothers's incremental borrowing rate is 6% a year (0.5% a month), Simon's implicit rate is unknown. Click here to view the factor table. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) the end of the lease term. What is the nature of this lease to Splish Brothers? The nature of this lease is a/an lease 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 payments