Assume that on December $31,2024$ Kimberly$-$Clark Corp, signe a $10-$year, non$-$cancelable lease agreemant to leasa a storaze

buldins from Sheridan Storage Company: The following information pertains to this lase agrearnant

The agresment requires cqual rental payments of $$66,699$ beginning on December $31,2024.$

The fairvalue of the building on December $31,2024,$ is $$497\mathrm{.}529.$

The building has an estimated economic life of $12$ yaars, a suaranteed residual value of $$9,000,$ and an exoacted residual

valus of $$6400.$ Kimberiy$-$Clark depreciates similar buildings on the straight$-$line mathod.

The lease is nonrenovable. At the termination of the lease, the building reverts to the lessor.

Kimbarly$-$Clark's incremental borrowing rate is $8\%$ per year. Thelessor's impliot rate is not known by Kimserly$-$Clark.

Clickhere to view factor tables.

$($For calculation purposes, use $5$ decimal ploces as displayed in the factor toble provided$)$

$($a$)$

$($b$)$

$($d$)$

$x$ Your arawar is incorrect.

Resurn to the original facts in the problem. Now suppose that, at the end of the lease term. Kimberly$-$Clark took geod care of the

asest and Sheridan agress that the fair value of the asset is actually $$9,000.$ Record the entry for Kimbarly$-$Clark at the ond of the

lease to return control of the storase building to Sharican $($assuming the accrual of interest on the lease liability has already been

mads$).($Credit occount titles are automotically indented when the omount is entered. Do not indent manually. If no entry is required select.

$"$WE Entry" for the account titles and enter Ofor the amounts. Ust all debit entries before credit entries$)$

Account Titles and Explanation

Debit

Credit

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