Assume that on December 31st, 2019 Kimberly-Clark Corp signs a 10-year, non-cancelable lease agreement to lease a storage building from Sheffield Storage Company.

C Get Homework Help With Chege * C Laura Leasing Company Signs Ar X + m/courses/37313/assignments/3958951 - Assignments > Ch 21: Homework Ch 21: Homework Your grade has been recorded in the Gradebook. Sun, Apr 12, 2020, 1:23:02 PM (America/New York-04:00) Question 7 View Policies Current Attempt in Progress 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 $66,799 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019 is $488,254. 3. The building has an estimated economic life of 12 years, a guaranteed residual value of $9.000, and an expected residual value of $6,300. 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 implicitrate is not known by KimberlyClark. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) C Get Homework Help With Cheo X C Laura Leasing Company Signs Ar /courses/37313/assignments/3958951 + Date Account Titles and Explanation Debit Credit 12/31/19 Right-of-Use Asset Lease Liability (To record the lease) 12/31/19 Lease Liability Cash (To record first lease payment) 12/31/19 - Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset) 12/31/20 Interest Expense Lease Liability Cash (To record interest expense) 0 + H 2 4 6 W S D & H - Go Go G 9 C Get Homework Help With Chene XIC Laura Leating Company Signs Ar + om/courses/37313/assignments/3958951 LJUL RELATE Right-of-Use Asset (To record amortization of the right-of-use asset) 12/31/20 Interest Expense Lease Liability Cash (To record interest expense) 12/31/20 (To record amortization of the right-of-use asset) 12/31/20 (To record interest expense)