ass me nat on Decembe 31, 2016, Kimberly Clark Corp. s rs a 10 ear, non-cancelaele ease ag een ent to lease a szerage D 1din rom Sreteld storage compar The r 10% rnormaton peans to this lease agreement: 1. The agrent reqas equal rental paymets of f00,899 begingo December 31,2010 2. The er value of the builcing onn December 31, 2016 is $4B,9B 3. The building has an estmated econsmic life of12 years, a guaranteed residue value of $9.000, and an erpected residual alue of $6,200. Kimberly-Clark depreciates siniar buidings on the staight-line mecnad 1. The lease is nonrenable. At the terminaban f the lease, the building reverts to the lesso 5. Krnberly-Clark's ncremerical b-rrawing rate s 0% per rear-ne lessor's implic t rate is not known by Kimberly-Clark. Su cuse he same ads as acqY2 ex-ept "dt Kinberl Clark r curred lega ees resultino rarn ne ezec and right Dus asst be affecbed under this situation un the ease u S,000 and recelved a ease ln eritive rom She eld to ente the lease of S1, 0. HDO Ouuld Une r itial measurement u he lease lid liLy Rignt-or-use asset Suapose that in addition to the $66,D99 annual rental yments, Kimbey-Clark is also equired to pay 55,d0 for insurance costs each ear n the buiding directly to the lessor, Shettiela Storage. How ould this executor cst attect the initial measurament af the lease litilit and ig-of-use asseL? (Rd is wer to deciridl ) places, e.g. 5,275 Lease abilty No s.cpose that the end o the lease tem Kinoeny-Clark:Dzk good care ofthe asset and she eld-grees that the fai alue o the asset is at ally g DDC Record the B by D Kimaerly lar at the end o the lease to return control ofthe storage building to Shettiald (assumig the acrual of interest cn the lease liablity has already een made) (Credit account titles are atrtomatically indeted when the amount is entered. Do not indet mancray.J Aount Titles and Explariation Leese Liabilty Debit Gain on Lease ass me nat on Decembe 31, 2016, Kimberly Clark Corp. s rs a 10 ear, non-cancelaele ease ag een ent to lease a szerage D 1din rom Sreteld storage compar The r 10% rnormaton peans to this lease agreement: 1. The agrent reqas equal rental paymets of f00,899 begingo December 31,2010 2. The er value of the builcing onn December 31, 2016 is $4B,9B 3. The building has an estmated econsmic life of12 years, a guaranteed residue value of $9.000, and an erpected residual alue of $6,200. Kimberly-Clark depreciates siniar buidings on the staight-line mecnad 1. The lease is nonrenable. At the terminaban f the lease, the building reverts to the lesso 5. Krnberly-Clark's ncremerical b-rrawing rate s 0% per rear-ne lessor's implic t rate is not known by Kimberly-Clark. Su cuse he same ads as acqY2 ex-ept "dt Kinberl Clark r curred lega ees resultino rarn ne ezec and right Dus asst be affecbed under this situation un the ease u S,000 and recelved a ease ln eritive rom She eld to ente the lease of S1, 0. HDO Ouuld Une r itial measurement u he lease lid liLy Rignt-or-use asset Suapose that in addition to the $66,D99 annual rental yments, Kimbey-Clark is also equired to pay 55,d0 for insurance costs each ear n the buiding directly to the lessor, Shettiela Storage. How ould this executor cst attect the initial measurament af the lease litilit and ig-of-use asseL? (Rd is wer to deciridl ) places, e.g. 5,275 Lease abilty No s.cpose that the end o the lease tem Kinoeny-Clark:Dzk good care ofthe asset and she eld-grees that the fai alue o the asset is at ally g DDC Record the B by D Kimaerly lar at the end o the lease to return control ofthe storage building to Shettiald (assumig the acrual of interest cn the lease liablity has already een made) (Credit account titles are atrtomatically indeted when the amount is entered. Do not indet mancray.J Aount Titles and Explariation Leese Liabilty Debit Gain on Lease
