Exercise 9.9 (Algo) Compore instellment notes ond leoses (LO9-2, 9.3) January 1, 2024, Paradise Partmers decides to upgrade recreational equipment at its resorts. The company is contemplating whether to purchase or lease the new equipment. Use pV of S1 and PVA or S1 (Use appropriate factor(s) from the tables provided.) Requlred: 1. The company can purchase the equipment by borrowing $265,000 with a 20 -month, 12% installment note. Payments of $14,685.06 are oue at the end of each month, and the first instaliment is due on January 31,2024 Record the issuance of the instaliment note payable for the purchase of the equipment 2. The company can sign a 20-month lease for the equipment by agreeing to pay $1,637,22 at the end of each month, beginning Janusry 31, 2024. At the end of the leose, the equipment must be returned. Assuming a borrowing rate of 12%, record the leose. 3. As of January 1,2024. does the instaliment note or the lease have a greater effect on increasing the company's amount of reported debc and by how much? 4. Suppose the equipment has a total value of $122.000 at the end of the 20 -month perlod, which option fpurchasing with instaliment note or leasingi would likely be better? Complete this question by entering your answers in the tabs below. 1. The company can purchase the equipment by borrowing $265,000 with a 20 -month, 12% installment note. Payments of $14,685.06 are due ot the end of each month, and the first installment is due on January 31,2024 . Record the issuance of the installment note parable for the purchase of the equipment. 2. The company can sge a 20 -month lease for the equipment by agreeing to pay $11,637.22 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 gortiaular transaction/event, select "No Journal Entry Required" in the first account fiecld.) 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 contemplating wheth purchase or lease the new equipment. Use PV of S1 and PVA of \$1. (Use oppropriate factor(s) from the tables provided.) Required: are due at the end of each month, and the first installment is due on January 31,2024 . Record the issuance of the instalimerit note payable for the purchase of the equipment 2. The company can sign a 20-month lease for the equipment by agreeing to pay $11.637.22 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 or January 1, 2024, does the installment note or the lease have a greater effect on increasing the company's amount of repor debt, and by how much? 4. Suppose the equipment has a total value of $122.000 at the end of the 20 -month period, which option (purchasing with installm note or leasing) would likely be better? Complete this question by entering your answers in the tabs below. As of January 1,2024 , does the installment note or the lease have a oreater elfect on increasing the company's amount of reported debt, and by how much? (Round other intermediate and final ang wers to the nearnst whole dollar amnount.)