Spish Brothers Company leases an automobile with a fair value of $13,942 from William Motors, Inc, on the following terms. 1. Non-cancelable term of 50 months. 2. Rental of $280 per month (at the beginning of each month). (The present value at 0.5% per month is $12.422.) 3. Splish Brothers guarantees a residual value of $1,580 (the present value at 0.5% per month is $1,231 ), Splish Brothers expects the probable residual value to be $1,580 at the end of the lease term. 4. Estimated economic life of the automobile is 60 months. 5. Splish Brothers's incremental borrowing rate is 6% a year (0.50% a month). William's implicit rate is unknown. Your answer is correct. What is the nature of this lease to Splish Brothers? The nature of this lease is a/an lease. eTextbook and Media List of Accounts Attempts: 2 of 5 used What is the present value of the lease payments to determine the lease liability? (Round answer to 0 decimal places, eg. 5,275 .) Present value of the lease payments Based on the original fact pattern, record the lease on Splish Brothers's books at the date of commencement. (List debit entry before credit entry. Credit occount 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 Ofor the amounts.) Record the first month's lease payment (at commencement of the lease). (List debit entry before credit entry, Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount tities and enter O for the amounts. Round answers to 0 decimal places, es. 5,275.) Record the second month's lease payment. (List all debit entries before credit entries. Credit account fitics are outomotically 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. Round answers to O decimal places, es. 5.275