16.35/21 I!! Question 4 of 7 View Policies Show Attempt History Current Attempt in Progress Tamarisk Company leases an automobile with a fair value of $19.465 from John Simon Motors, Inc. on the following terms 1 2 3. Non-cancelable term of 50 months. Rental of $400 per month (at the beginning of each month). The present value at 0.5% per month is $17.746) Tamarisk guarantees a residual value of $1.720 (the present value at 0.5% per month is 51,340). Delaney expects the probable residual value to be $1.720 at the end of the lease term Estimated economic life of the automobile is 60 months. Tamarisk's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. 4. 5. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided) Your answer is correct G - 21 Question 4 of 7 16.35/21 Click here to view factor tables, (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is correct What is the nature of this lease to Tamarisk? The nature of this lease is a/an finance lease. e Textbook and Media List of Accounts 3/3 Question Part Score estion 4 0 / 16.35/21 E Question Part Score 3/3 Your answer is correct What is the present value of the lease payments to determine the lease liability? (Round answer to decimal places, eg,5,275.) Present value of the lease payments 17746 e Textbook and Media List of Accounts 3/3 Question Part Score Your answer is correct. dtv A 2. muestion 4 of 7 16.35/21 Question Part Score 3/3 Your answer is correct Based on the original fact pattern, record the lease on Tamarisk's books at the date of commencement (Credit account titles are automatically indented when amount is entered. Do not indent manually) Debit Credit Account Titles and Explanation Right-of-Use Asset 17746 17746 Lease Liability eTextbook and Media List of Accounts 3/3 Question Part Score atv A 2 stion 4 of 7 16.35/21 estion Part Score 3/3 Your answer is correct. Record the first month's lease payment (at commencement of the lease). (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Lease Liability 400 400 Cash e Textbook and Media List of Accounts Question 4 of 7 16.35/21 Your answer is partially correct. Record the second month's lease payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to decimal places, eg. 5,275.) Account Titles and Explanation Debit Credit Lease Liability 305 Interest Expense 95 Cash 400 e Textbook and Media List of Accounts 2.34/3 Question Part Score atv A @ N Question 4 of 7 16.35/21 List of Accounts Question Part Score 2.34/3 Your answer is partially correct Record the first month's amortization on Tamarisk's books (assume straight line). (Credit account titles are automatically indented when amount is entered. Do not Indent manually. Round answers to 2 decimal places, eg, 5.275.25.) Debit Credit Account Titles and Explanation 347 Amortization Expense 347 Right-of-Use Asset e Textbook and Media List of Accounts Atv A 21 Question 4 of 7 16.35/21 E * Your answer is incorrect Suppose that instead of $1,720. Tamarisk expects the residual value to be only $500 (the guaranteed amount is still $1.720) How does the calculation of the present value of the lease payments change from part (b)? (Round answer to 0 decimal places, os 5,275.) $ PV of lease payments 19.036 e Textbook and Media List of Accounts 0/3 Question Part Score Attempts: 2 of 3 used Submit Answer Save for Later Last saved 34 minutes ago Sain will auto submitted on the due date: Auto