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January 1, 2024, Paradise Partners decides to upgrade recreational equipment at iss resorts. The company a contemplating whether to purchase or lease the new equipment.

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January 1, 2024, Paradise Partners decides to upgrade recreational equipment at iss resorts. The company a contemplating whether to purchase or lease the new equipment. Use PV of S1 and PVA of 51 . (Use oppropeinte foctor(s) from the tobles provided.) Required: 1. The company can purchase the equipment by borrowing $250,000 with a 30-month, 12\% instaliment note. Poyments of $9.68703 are due at the end of each month, and the first installment is due on Januacy 31, 2024 . Record the osuance of the instaliment note payable for the purchase of the equipment. 2. The company can sign a 30 -morth lease for the equipment by agreeing to pay 57749.62 at the end of each monti beginning January 31, 2024. At the end of the lease, the equipment must be returned. Assuming a borrowing rate of 125 , record the lease. 3. As of January 1, 2024, does the instaliment note or the lesse have a greater effect on increasing the conpany's amount of teported debt, and by how much? 4. Suppose the equipment has a total value of $100,000 at the end of the 30 -month period, which opton (purchasmg with installment note or leasingl would tikely be better? Rec 1 and 2 1. The company can purchase the equipment by borrowing 3250,000 with a 30 -month, 124 instalitient note. Bayments of $9,687,03 are due at the end of each month, and the first instaliment is due on Janumy 31,2024. Record the issuance of the installment note payable for the purchase of the equipment. 2. The company can sign a 30-month lease for the equipment by agreeing to pay. 57.749.62 at the end of each month, beginning 1anuary 31,2024 , At the end of the lease, the equipment must be returned. Assuming a borroming rate of 12%. record the lease. (If no entry is required for a particular transaction/event, select "No jourmal Entry Fequired" in the Fist account Field.)

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