On June 30, 2024, Exploration Incorporated signs a lease requiring quarterly payments each year for the next five years. Each of the 20 quarterly payments is $29,165.05, with the first lease payment beginning September 30. The companys normal borrowing rate is 7%. Use PVA of $1. (Use appropriate factor(s) from the table provided.) Required: 1. Calculate the present value of the lease payments. 2. Record the lease on June 30, 2024.

Table 4 Present Value of an Ordinary Annuity of $1

PVA = 1 1/(1 + i)ⁿ/i

n/i	1.0%	1.5%	2.0%	2.5%	3.0%	3.5%	4.0%	4.5%	5.0%	5.5%	6.0%	7.0%	8.0%	9.0%	10.0%	11.0%	12.0%	13.0%
1	0.99010	0.98522	0.98039	0.97561	0.97087	0.96618	0.96154	0.95694	0.95238	0.94787	0.94340	0.93458	0.92593	0.91743	0.90909	0.90090	0.89286	0.88496
2	1.97040	1.95588	1.94156	1.92742	1.91347	1.89969	1.88609	1.87267	1.85941	1.84632	1.83339	1.80802	1.78326	1.75911	1.73554	1.71252	1.69005	1.66810
3	2.94099	2.91220	2.88388	2.85602	2.82861	2.80164	2.77509	2.74896	2.72325	2.69793	2.67301	2.62432	2.57710	2.53129	2.48685	2.44371	2.40183	2.36115
4	3.90197	3.85438	3.80773	3.76197	3.71710	3.67308	3.62990	3.58753	3.54595	3.50515	3.46511	3.38721	3.31213	3.23972	3.16987	3.10245	3.03735	2.97447
5	4.85343	4.78264	4.71346	4.64583	4.57971	4.51505	4.45182	4.38998	4.32948	4.27028	4.21236	4.10020	3.99271	3.88965	3.79079	3.69590	3.60478	3.51723