Exercise 9-9 (Algo) Compare installment notes and leases (LO9-2, 9-3) January 1, 2024. Paradise Partners decides to upwrade recreational equipment at its resorts. The company is contemplating whether to purchase or Isase the new equipment. Use PV of S1 and PVA of \$1. (Use appropriate factor(s) from the tables provided.) Required: 1. The company can purchase the equipment by borrowing $241,000 with a 25 -month, 12% installment note. Payments of $10,943,03 are due at the end of each mont, and the first installment is due on Janusry 31, 2024. Record the isuance of the installment note payable for the purchase of the equipment. 2. The compeny can sign a 25 -month lease for the equipment by agreeing to pey $9.035.94 at the end of each month, beginning January 31,2024. At the end of the lense, the equipment must be returned. Assuming a borrowing rate of 12%, record the lease. 3. As of January 1,2024, does the installment note or the lease have a preater effect on increasing the compeny's amount of reported debt, and by how mucti? 4. Suppose the equipment has a total value of \$116,000 at the end of the 25 -month period, which option opurchasing wish installment note or lessirigl would likely be better? Complete this question by entering your answers in the tabs below. 1. The company can purchase the equipmert by borrowing $241,000 with a 25 -month, 123/ installment note. Fayments of $10,943.03 payable for the purctase of the equipment. 2. The company can sign a 25-month lease for the equipment by agrecing to pay $9,035.94 at the end of each month, beginning (If no enty is required for a particular transactiorvevent, select "No Journal Entry Required" in the first accourt fleld.) Show less * Journal entry worksheet 2 The company can purchase the equipment by borrowing \$241,000 with a 25 manth, 12% installment note. Pavments of $10,943.03 are due at the end of each month, and the first instelrment is due on January 31,2024 , Recurd the isauance of the inatallment note payable for the purchase the equipmernt. Hobe: Enter deblis before codits. Journal entry worksheet The company can sign a 25 -morth lease for the equipment by agreeing to pay $9,035.94 at the end of each month, beginning Jenuary 31, 2024. At the end of the lease, the equipmerv must be returned. Assuming a berrowing rate of 12%, recierd the leadin