Teal Mountain Company leases an automobile with a fair value of $20,014 from John Simon Motors, Inc., on the following terms: Non-cancelable term of 50 months. 1. 2. Rental of $410 per month (at the beginning of each month). (The present value at 0.5% per month is $18,190.) 3. Teal Mountain guarantees a residual value of $1,840 (the present value at 0.5% per month is $1,434). Teal Mountain expects the probable residual value to be $1,840 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.)