On January 1, 2017,CarlaCorporation signed a 3-year noncancelable lease for several computers. The terms of the lease called forCarlato make annual payments of $4,100at the beginning of each year, starting January 1, 2017. The computers have an estimated useful life of 3 years and a $560unguaranteed residual value. The computers revert back to the lessor at the end of the lease term.Carlauses the straight-line method of depreciation for all of its property, plant, and equipment.Carla's incremental borrowing rate is12%, and the lessor's implicit rate is unknown.

On January 1, 2017, Carla Corporation signed a 3-year noncancelable lease for several computers. The terms of the lease called for Carla to make annual payments of $4,100 at the beginning of each year, starting January 1, 2017. The computers have an estimated useful life of 3 years and a $560 unguaranteed residual value. The computers revert back to the lessor at the end of the lease term. Carla uses the straight-line method of depreciation for all of its property, plant, and equipment. Carla's incremental borrowing rate is 12%, and the lessor's implicit rate is unknown. Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the nal answer to 0 decimal places e3. 58,971.) Present Value $ eTextbook and Media List of Accounts Prepare all necessary journal entries for Carla for this lease through January 1, 20 18. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit # (To record lease) (To record rental payment) # (To record depreciation) (To record interest) Jan. 1, 2018