CONT

Suppose that in addition to the $67,085 annual rental payments, Waste Management is also required to pay $4,500 for insurance directly to the lessor, Reyes Warehouse Company. How would this executory cost affect the initial measurement of Right-of-use asset Reyes agree that the fair value of the asset is actuaily $16,00o. Now suppose that, at the end of the lease term, Waste Management and Record the entry for Waste Management at the end of the lease to return control of the warehouse b liability has already been made). (Credit account titles are automatically indented when the amount is building to Reyes (assuming the accrual of interest on the lease entered. Do not indent manually.) Credit Debit Account Titles and Explanation