Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a dellvery truck to a local florist. Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,850 beginning September 30,2021 , the beginning of the lease, and each quarter (December 31, March 31, and June 30) through June 30, 2024 (three-year lease term). The florist had the option to purchase the truck on September 29, 2023, for $7700 when it was expected to have a residual value of $12,550. The estimated useful life of the truck is four years. Mid. South Auto Leasing's quarterly interest rate for determining payments was 2% (opproximately 8%5 annually) Mid-South paid $32.140 for the truck. Both companies use straight-line depreciation or amortization. Anything Grows incremental interest rate is 8%. Hint A lease term ends for accounting purposes when on option becomes exercisable if it's expected to be exercised (l.e, a BPO). (FV of S1, PV of S1. FVA of S1, PVA of S1, FVAD of S1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the amount of selling profit thot Mid-South would recognize in this sales-type lease. (Be careful to note that, although poyments occur on the last calendar day of eoch quarter since the first payment was at the beginning of the lease, puyments represent an annulty due] 2. Prepare the oppropriare entries for Anything Grows and Mid-South on September 30.2021 3. Prepare on amonization schedule(s) describing the pattern of interest expense for Anything Grows and interect revenue for MidSouth Auto Leasing over the lease term 4. Prepare the appropriate entries for Anything Grows and Mid-South Auto Leasing on December 31, 2021 5. Prepare the appropriate entries for Anything Grows and Mid-South on September 29, 2023, assuming the purchore option was exercised on that date