Lease term 3 years, no renewal option Economic life: 6 years Purchase option: Can purchase the automobile at fair value upon expiration of the lease. Monthly payment: $500 Payment date: beginning of the month Lessee incremental borrowing rate: 6% Market value of automobile: $30,000 Present value of the monthly payment $16,518 Instructions: (a) Discuss the nature of the lease for the lessee (b) Make the Lease Amortization Schedule (c) Prepare the journal entries of the lessee of the first three months January, February and March 2022