assume that on december 31 2019 kimberly clark corp signsa 10 year non cancelable lease agreement to lease storage building from sheffield storage company. the following information pertains to this lease agreement. the agreement requires equal rental payments of 66,899 beginning on december 31 2019

The fair value of the building on december 31 2019 is 488,8978

the building has an estimated economic life of 12 years a guaranteed residual value of 9,000 an expected resdiual value of 6200 8% borrowing rate a year.