Assume that on December $31,2019,$ Kimberly$-$Clark Corp. signs a $10-$year, non$-$cancelable lease agreement to lease a storage building from Sheffield Storage Company. The following information pertains to this lease agreement.

$1.$ The agreement requires equal rental payments of $$66,799$ beginning on December $31,2019.$

$2.$ The fair value of the building on December $31,2019$ is $$488,254.$

$3.$ The building has an estimated economic life of $12$ years, a guaranteed residual value of $$9,000,$ and an expected residual value of $$6,300.$ Kimberly$-$Clark depreciates similar buildings on the straight$-$line method.

$4.$ The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.

$5.$ Kimberly$-$Clark$$s incremental borrowing rate is $8\%$ per year. The lessor$$s implicit rate is not known by Kimberly$-$Clark.$($To record the lease$)$

$($To record first lease payment$)$

$($To record amortization of the right$-$of$-$use asset$)$

$($To record interest expense$)$

$($To record amortization of the right$-$of$-$use asset$)$