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Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buylng and requires an Interest rate Implilclt In the lease that Is one percent below alternate methods of financing. On September 30, 2016, the company leased a dellvery truck to a local fiorist, Anything Grows. The lease agreement specified quarterly payments of $8,000 beginning September 30, 2016, the Inception of the lease, and each quarter (December 31, March 31, and June 30) through June 30, 2019 (three-year lease term). The florlst had the option to purchase the truck on September 29, 2018, for $16,000 when t was expected to have a resldual value of $15,000. The estimated useful life of the truck Is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was 3% (approximately 12% annually) Mid-South pald $61,000 for the truck. Both companles use stralght-line depreciation. Anything Grows' incremental interest rate is 12%. Hint: A lease term ends for accounting purposes when an option becomes exercisable if it's expected to be exercised (l.e., a BPO). (FV of $1, PV of $1, FVA of $1 PVA of $1, FVAD of $1 and PVAD of $1 (Use approprlate factor(s) from the tables provlded.) Required 1. Calculate the amount of dealer's profit that Mid-South would recognize In this sales- type lease. (Be careful to note that, although payments occur on the last calendar day of each quarter, since the first payment was at the Inception of the lease, payments represent an annulty due.) ealer's profit