Assume that on December 31, 2019, Kimberly-Clark Corp. sigas 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. 2. 3. The agreement requires equal rental payments of $ 66,399 beginning on December 31, 2019. The fair value of the building on December 31, 2019 is $ 485,586, The building has an estimated economic life of 12 years, a guaranteed residual value of $ 9,500, and an expected residual value of $ 7,200. Kimberly-Clark depreciates similar buildings on the straight-line method. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. Kimberly-Clark's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Kimberly-Clark. 4. 5. (c) Suppose that in addition to the $ 66,399 annual rental payments, Kimberly-Clark is also required to pay $5,000 for insurance costs each year on the building directly to the lessor, Sheffield Storage. How would this executory cost affect the initial measurement of the lease liability and right-of-use asset? (Round answer to O decimal places, eg. 5,275.) Lease liability $