NORTON Question 28 On January 1, 2017, Monty Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Monty to make annual payments of $8,482 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Morty uses the straight line method of depreciation for all of its plant assets. Monty's incremental borrowing rate is 9%, and the lessor's implicitrate is unknown. Click here to view factor tables Compute the present value of the minimum lease payments (Round present value factor calculations to 5 decimal places 1.25124 and the finanswer to decimal places. 5.971.) The present value of the minimum lease payments 35961 Prepare all necessary foumal entries for Monty for this lease through January 1, 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually. It entry is required select "Ma Entry for the account titles and enter for the amounts, Round answers to decimal places ev. 58.971.) Date Account and Explanation Debit Credit (To record the base) (to record first payment.) (To record depreciation) (To record test) 1/1/18