Question 2 of 5 -/28 ili View Policies Current Attempt in Progress Nash Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $205,000. The terms of the lease are as follows: The lease term begins on January 1, 2019, and runs for 5 years. . The lease requires payments of $45,095 at the beginning each year starting January 1, 2019. At the end of the lease term, the equipment is to be returned to the lessor. . Lantus' implied interest rate is 5%, while Nash's borrowing rate is 6%. Nash uses straight-line depreciation for similar equipment. The year-end for both companies is December 31. Assuming that both companies follow ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Determine the present value of the minimum lease payments. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Present Value $ 201354 Prepare Lantus' lease amortization schedule using the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Net Investment Recovery Net Investme Date Payment Interest January 1, 2019 $ January 1, 2019 $ 45095 $ 45095 January 1, 2020 45095 9376 35719 January 1, 2021 45095 7232 37863 January 1, 2022 45095 4961 40134 January 1, 2023 45095 2553 42542 $ 225475 $ 24121 $ 201354 Date Account Titles and Explanation Debit Credit Jan. 1, 2019 Equipment Acquired for Lessee 201354 Cash 201 (To record purchase of equipment.) Unearned Interest Income 45095 Interest Income 0 Cash 45 (To record inception of lease.) Cash Lease Receivable (Collection of lease payment.) Dec. 31, 2019 4 Amortization Expense Right-of-Use Asset (To record interest.)