Current Attempt in Progress

The agreement requires equal rental payments of $$66,299$ beginning on December $31,2024.$

The fair value of the building on December $31,2024,$ is $$486,019.$

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.

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$($For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$

$($a$)$

Your answer is partially correct.

$($To record the lease$)$