Marin Company leases an automobile with a fair value of $21,505 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of $450 per month (at the beginning of each month). (The present value at 0.5% per month is $19,964.) 3. Marin guarantees a residual value of $1,440 (the present value at 0.5% per month is $1,122). Marin expects the probable residual val 4. Estimated economic life of the automobile is 60 months. 5. Marin's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is correct. What is the nature of this lease to Marin? finance The nature of this lease is a/an lease. SHOW LIST OF ACCOUNTS X] Your answer is incorrect. Try again. 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 18842 SHOW LIST OF ACCOUNTS TO TEXT TO TEXT Your answer is partially correct. Try again. Based on the original fact pattern, record the lease on Marin's books at the date of (Credit account titles are automatic Account Titles and Explanation Debit Credit 18842 Lease Liability 18842 Lease Liability 450 Cash 450 TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Record the second month's lease payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Interest Expense 92 Lease Liability 358 Cash 450 Your answer is partially correct. Try again. Record the first month's amortization on Marin's books (assume straight-line). (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 deci Account Titles and Explanation Debit Credit Amortization Expense 314 314 SHOW LIST LINK TO TEXT LINK TO TEXT Your answer is incorrect. Try again. Suppose that instead of $1,440, Marin expects the residual value to be only $500 (the guaranteed amount is still $1,440). How does the calculation of the present value of the lease payments change from part (b)? ( PV of lease payments 732