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Marin Company leases an automobile with a fair value of $16513 from John Simon Motors, Inc., on the following terms nting ates 1. Non-cancelable term

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Marin Company leases an automobile with a fair value of $16513 from John Simon Motors, Inc., on the following terms nting ates 1. Non-cancelable term of 50 months. 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 $1420 (the present value at 0.5% per month is $1,107). Marinexpects 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 implicitrate is unknown support Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factortable provided) What is the nature of this lease to Marin? - lesse The nature of this lease is a/an What is the present value of the lease payments to determine the lease liability? (Round answer to decimal places. e. 5.2733 Present value of the lease payments $ Based on the original fact pattern, record the lease on Marin's books at the date of commencement. (Credit account titles are automatically Indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Record the first month's lease payment at commencement of the lease). (Credit account titles are automatically Indented when amount is entered. Do not indent manually Round answers to decimal places, es 5,275) Account Titles and Explanation Debit Credit Record the second months lease payment. (Credit account titles are automatically Indented when amount is entered. Do not indent manually Round answers to decimal places, eg: 5.275) Account Titles and Explanation Debit Credit 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 decimal places, s. 5,275.25) Account Titles and Explanation Debit Credit Suppose that instead of $1.420. Marin expects the residual value to be only $500 (the guaranteed amount is still $1.4201. How does the calculation of the present value of the lease payments change from part (b)? (Round answer to decimal places, s. 5.275) PV of lease payments $

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