#10

Check my work On January 1, Garcia Supply leased a truck for a three-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $10.500 due on December 31 of each year, calculated by the lessor using a 4% discount rate Negotiations led to Garcia guaranteeing a $27.400 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $26,300. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee? (Round your answer to the nearest whole number.) Amount to be added