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Assume that on December 31,2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Carla Vista Storage Company. The following

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Assume that on December 31,2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Carla Vista Storage Company. The following information pertains to this lease agreement. 1. The agreement requires equal rental payments of $66,899 beginning on December 31,2024 . 2. The fair value of the building on December 31,2024 , is $488,978. 3. The building has an estimated economic life of 12 years, a guaranteed residual value of $9,000, and an expected residual value of $6,200. Kimberly-Clark depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. 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.) Question 5 of 10 1.5/3 \begin{tabular}{lll} Date & Account Titles and Explanation & Debit \\ \hline 31/24: & Rightof-UseAsst \end{tabular} Credit (To record the lease) 31/24: Leake thatity 66899 Canh 486106 (To record first lease payment) 31/25: Amortizition Expense. 48511 Reghit-at-Use Asset 66899 (To record amortization of the right-of-use asset) 2/31/25 Lease Lability 33362 Interest Expense 33537 Canh 66899 (To record interest expense) 31/26 Amortiration Econse 46611 Roghturiuse Astet 48611 (To record amortization of the right-of-use asset) 2/31/26 : Leare Liatility 36031 Interes Expense 30868 Ginh 66899 (To record interest expense) eTextbook and Media List of Accounts Attempts: 2 of 3 used (b) Suppose the same facts as above, except that Kimberly-Clark incurred legal fees resulting from the execution of the lease of $5,000, and recelved a lease incentive from Carla Vista to enter the lease of $1,000. How would the initial measurement of the lease liability and right-of-use asset be affected under this situation? Right-of-use asset Suppose that in addition to the $66,899 annual rental payments, Kimberly-Clark is also required to pay $5,000 for insurance costs each year on the building directly to the lessor, Carla Vista Storage. How would this executory cost affect the initial measurement of the lease liability and right-of-use asset? (Round answer to 0 decimal places, e.s. 5.275.) Lease liability $ eTextbook and Media List of Accounts Attempts: 1 of 3 used (d) The parts of this question must be completed in order. This part will be available when you complete the part above

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