Splish Brothers Company leases an automobile with a fair value of $18,767 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of $390 per month (at the beginning of each month). (The present value at 0.5% per month is $17,302.) 3. Splish Brothers guarantees a residual value of $1,410 (the present value at 0.5% per month is $1,099). Splish Brothers expects the probable residual value to be $1,410 at the end of the lease term. 4. 5. Estimated economic life of the automobile is 60 months. Splish Brothers's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)