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). 3. Kingbird guarantees a residual value of $1,030. Delaney 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. Kingbirds incremental borrowing rate is 6% a year (0.5% a month). Simons implicit rate is unknown.

(f) Your answer is partially correct. Try again. Record the first month's amortization on Kingbird's books (assume straight-line). (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.25.) Account Titles and Explanation Debit Credit Depreciation Expense 360.92 Depreciati Accumulated Depreciati 360.92 Click if you would like to Show Work for this question: Open Show Work Attempts: 1 of 15 used