Question 3 --/10 View Policies Current Attempt in Progress Novak Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $204.000. The terms of the lease are as follows: The lease term begins on January 1, 2019. and runs for 5 years. The lease requires payments of $44,875 at the beginning of each year starting January 1, 2019. At the end of the lease term, the equipment is to be returned to the lessor. Lantus implied interest rate is 5%, while Novak's borrowing rate is 6%. Novak uses straight-line depreciation for similar equipment. The year-end for both companies is December 31. Assuming that both companies follow ASPE Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Determine the present value of the minimum lease payments. (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275.) Present Value e Textbook and Media List of Accounts Prepare Lantus lease amortization schedule using the effective interest method. (Round answers to O decimal places, eg. 5,275.) Net Investment Recovery Net Investment Date Payment Interest January 1, 2019 January 1, 2019 $ January 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023 Prepare the 2019 journal entries for Lantus Corporation, the lessor. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit (To record purchase of equipment.) (To record inception of lease.) (Collection of lease payment.) (To record interest.)