Exercise 9-9 (Algo) Compare installment notes and leases (LO9-2, 9-3) January 1, 2024, Paradise Partners decides to upgrade recreational equipment at its resorts. The company is contemplati whether to purchase or lease the new equipment. Use PV of \$1 and PVA of $1. (Use appropriate factor(s) from the table: provided.) Required: 1. The company can purchase the equipment by borrowing $248,000 with a 22 -month, 12% installment note. Payments of $12,614.20 are due at the end of each month, and the first installment is due on January 31,2024 . Record the issuance of the installment note payable for the purchase of the equipment. 2. The company can sign a 22-month lease for the equipment by agreeing to pay $10,121.88 at the end of each month, beginning January 31,2024 . At the end of the lease, 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 greater effect on increasing the company's amount of reported debt, and by how much? 4. Suppose the equipment has a total value of $104,000 at the end of the 22-month period, which option (purchasing with installment note or leasing) would likely be better? Table 4 Present Value of an Ordinary Annuity of $1 PVA=11/(1+i)n/i 1. The company can purchase the equipment by borrowing $248,000 with a 22 -month, 12% installment note. Payments of $12,6 : are due at the end of each month, and the first installment is due on January 31,2024 . Record the issuance of the installment not payable for the purchase of the equipment. 2. The company can sign a 22-month lease for the equipment by agreeing to pay $10,121.88 at the end of each month, beginning January 31, 2024. At the end of the lease, the equipment must be returned. Assuming a borrowing rate of 12%, record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 2 The company can purchase the equipment by borrowing $248,000 with a 22 month, 12% installment note. Payments of $12,614.20 are due at the end of each month, and the first instaliment is due on January 31, 2024. Record the As of January 1,2024 , does the installment note or the lease have a greater effect on increasing the company's amount of reported debt, and by how much? (Round other intermediate and final answers to the nearest whole dollar amount.) Suppose the equipment has a total value of $104,000 at the end of the 22 -month period, which option (purchasing with installment note or leasing) would likely be better