January $1,2024,$ Paradise Partners decides to upgrade recreational equipment at its resorts. The company is contemplating whether to purchase or lease the new equipment. Use PV of $$1$ and PVA of $$1.($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ The company can purchase the equipment by borrowing $$233,000$ with a $21-$month, $12\%$ installment note. Payments of $$12,356\mathrm{.}17$ 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 $21-$month lease for the equipment by agreeing to pay $$9,492\mathrm{.}50$ 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 $$114,000$ at the end of the $21-$month period, which option $($purchasing with installment note or leasing$)$ would likely be better? $1.$ The company can purchase the equipment by borrowing $$233,000$ with a $21-$month, $12\%$ installment note. Payments of $$12,356\mathrm{.}17$ 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 $21-$month lease for the equipment by agreeing to pay $$9,492\mathrm{.}50$ 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.$)$