Windsor Company leases an automobile with a fair value of $14,864 from George Motors, Inc., on the following terms. 1. Non-cancelable term of 50 months. 2. Rental of $310 per month (at the beginning of each month). (The present value at 0.5% per month is $13.753. 3. Windsor guarantees a residual value of $1,030 (the present value at 0.5% per month is $803 ). Windsor expects the probable residual value to be $1,030 at the end of the lease term. 4. Estimated economic life of the automobile is 60 months. 5. Windsor's incremental borrowing rate is 6% a year ( 0.50% a month). George's implicit rate is unknown. Windsor Company leases an automobile with a fair value of $14,864 from George Motors, Inc., on the following terms. 1. Non-cancelable term of 50 months. 2. Rental of $310 per month (at the beginning of each month). (The present value at 0.5% per month is $13.753. 3. Windsor guarantees a residual value of $1,030 (the present value at 0.5% per month is $803 ). Windsor expects the probable residual value to be $1,030 at the end of the lease term. 4. Estimated economic life of the automobile is 60 months. 5. Windsor's incremental borrowing rate is 6% a year ( 0.50% a month). George's implicit rate is unknown