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 $67,899 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019 is $497,614. 3. 4. 5. The building has an estimated economic life of 12 years, a guaranteed residual value of $12,000, and an expected residual value of $8,200. 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. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Date Account Titles and Explanation Debit 12/31/19 right to use assets 12/31/19 Lease Liability (To record the lease) Lease Liability 12/31/20 cash (To record first lease payment) 49205.58 67899 Credit 49 (To record amortization of the right-of-use asset) (To record interest expense) (To record amortization of the right-of-use asset)