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BACK Exercise 21-2 Martinez Company leases an automobile with a fair value of $15,755 from...

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Accounting

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BACK Exercise 21-2 Martinez Company leases an automobile with a fair value of $15,755 from John Simon Motors, Inc., on the following terms: 1. Noncancelable term of 50 months. 2. Rental of $360 per month (at end of each month). (The present value at 1% per month is $14,111.) 3. Estimated residual value after 50 months is $1,150. (The present value at 1% per month is $699.) Martinez Company 4. Estimated economic life of the automobile is 60 months. 5. Martinez Company's incremental borrowing rate is 12% a year (1% a month). Simon's implicit rate is unknown. guarantees the residual value of $1,150 What is the present value of the minimum lease payments? The present value of the minimum lease payments

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