On January 1, 2017, Monty Corporation signed a 3-year noncancelable lease for several computers. The terms of the lease called for Monty to make annual payments of $4,400 at the beginning of each year, starting January 1, 2017. The computers have an estimated useful life of 3 years and a $400 unguaranteed residual value. The computers revert back to the lessor at the end of the lease term. Monty uses the straight-line method of depreciation for all of its property, plant, and equipment. Monty's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. (a) Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971.) Present Value $ | (b) Prepare all necessary journal entries for Monty for this lease through January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Cred (To record lease) (To record rental payment) (To record depreciation) (To record interest) Jan. 1, 2018