Assume that on December 31, 2019, Giles Corp. signs a 10-year, noncancelable lease agreement to lease a storage building from Connecticut Storage Company. The following information pertains to this lease agreement. 1. The agreement requires equal rental payments beginning on December 31, 2019. $ 71,830 2. The fair value of the building on December 31, 2019 $ 525,176 3. Estimated economic life of the building in years Guaranteed residual value of the building Expected residual value Giles depreciates similar buildings on the straight-line method. AA $ $ 12 10,000 7,000 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. Giles's annual incremental borrowing rate Lessor's 8% simplicit rate is not known by Giles. Lease Amortization Schedule INICIESE Annual Lease Payment (8%) Reduction on of Liability Lease Liability Date Lease Liability b) Suppose the same facts as above, except that the lease specified the following additional items: $ Incurred legal fees resulting from the execution of the lease Received a lease incentive from Connecticut to enter the lease 5,000 1,000 How would the initial measurement of the lease liability and right-of-use asset be affected under this situation? Calculation of the right-of-use asset: Right-of-use asset