Kingbird Company leases an automobile with a fair value of $20,275 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of $430 per month (at the beginning of each month). (The present value at 0.5% per month is $19,077. 3. Kingbird guarantees a residual value of $1,030 (the present value at 0.5% per month is $803 ). Kingbird expects the probable residual value to be $1,030 at the end of the lease term. 4. Estimated economic life of the automobile is 60 months. 5. Kingbird's incremental borrowing rate is 6% a year ( 0.5% a month). Simon's implicit rate is unknown. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. What is the nature of this lease to Kingbird? The nature of this lease is a/an lease. What is the present value of the lease payments to determine the lease liability? (Round answer to 0 decimal places, e.g. 5,275. ) Present value of the lease payments eTextbook and Media List of Accounts Attempts: unlimited (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above