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Grouper Company leases an automobile with a tair value of $16,199 from John Simon Motors, Inc., on the tollowing terms: 1, Noncancelable term of 50 months. 2. Rental of $390 per month ?al end of each month). (The present value at 1% per month is S1 5,287.) 3. Estimated residual value after 50 months is $1,180. (1he present value at 1% per month is $117.) Grouper Company guarantees the residual value of S 1,180. 4. Estinated economic life of the autonobile is 60 months 5, Grouper Companys incremental borrowing rate is 12% a year (196 a month). Simons implicit rate is unknown. Whal is the present value of the inimum lease payents? The present value of the minimum lease payments SHOW LTST OF ACCOINTS LTNK TO TEXT (c) Record the lease on Grouper Companys books al the dale of inception. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter O for the amounts.) Account Titles and Explanation Debit

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