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 Septernber 30, 202t, 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 $3.100 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 $6,200 when it was expected to have a residual value of $10,300. The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was 3% (approximately 12% annually). Mid South paid $25,840 for the truck. Both companies use straight-line depreciation or amortization. Anything Grows' incremental interest rate is 12%. Hint: A lease term ends for accounting purposes when an option becomes exercisableif it's expected to be exercised (l.e.. a BPO). (EV of\$1. PV ofS1, EVA oLS1. PVA oLS1. EVAD of S1 and EVAD of S1) (Use oppropriote foctor(s) from the tables provided.) Required: 1. Calculate the amount of selling profit that Mid South would recognize in this sales-type lease. (Be careful to note that, although payments occur on the last calendar day of each quarter, since the first payment was at the beginning of the lease. payments represent an annulty dues) 2. Prepare the approprlate enties for Anything Grows and Mid-South on September 30, 2021. 3. Prepare an amortization schedule(s) describing the pattern of interest expense for Anything Grows and interest revenue for MidSouth Auto Leasing over the lease term. 4. Prepare the approptiate entiles 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 purchase option was exerclsed on that date. NBLI:3 Future Value of an Ordinary Annuity of $1 FVA=i(1+i)n1 ABL.E 4 Present Value of an Ordinary Annuity of $1 VA=11+41 TAnit 5 , Future Value of an Annulty Due of 51 FVAD=[i(1+i)1](1+i) TAnAE G Presem Value of an Annuity Due of $1 PNAD=[i1(1+)21](1+6)