Teal Mountain Company leases an automobile with a fair value of $15,005 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of $300 per month (at the beginning of each month). (The present value at 0.5% per month is $13.310.) 3. Teal Mountain guarantees a residual value of $1,800 (the present value at 0.5% per month is $1,403 ). Teal Mountain expects the probable residual value to be $1,800 at the end of the lease term. 4. Estimated economic life of the automobile is 60 months. 5. Teal Mountain'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.) (a) Your answer is correct. What is the nature of this lease to Teal Mountain? The nature of this lease is a/an lease. What is the present value of the lease payments to determine the lease liability? (Round answer to 0 decimal places, e.g. 5,275.) Present value of the lease payments