Marin Company leases an automobile with a fair value of $16,513 from John Simon Motors, Inc., on the following terms: Non-cancelable term of 50 months. 1. 2. Rental of $340 per month (at the beginning of each month). (The present value at 0.5% per month is $15,084.) 3. Marin guarantees a residual value of $1,420 (the present value at 0.5% per month is $1,107). Marin expects the probable residual value to be $1,420 at the end of the lease term. 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. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What is the nature of this lease to Marin? (b) The nature of this lease is a/an eTextbook and Media List of Accounts Save for Later lease. Attempts: 0 of 5 used Submit Answer What is the present value of the lease payments to determine the lease liability? (Round answer to O decimal places, e.g. 5,275.) Present value of the lease payments