Progress Kingbird Company leases an automobile with a fair value of $ 20,275 from John Simon Motors, Inc., on the following terms: 1. 2. 3. Non-cancelable term of 50 months. Rental of $ 430 per month (at the beginning of each month). (The present value at 0.5% per month is $ 19,077.) Kingbird guarantees a residual value of $ 1,030 (the present value at 0.5% per month is $803). Kingbird expects the probable residual value to be $ 1,030 at the end of the lease term. Estimated economic life of the automobile is 60 months. Kingbird's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. 4. 5. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (c) Your answer is partially correct. Based on the original fact pattern, record the lease on Kingbird's books at the date of commencement. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit 19076 Lease Liability 19076 e Textbook and Media