Exercise 21A-4a-d (Part Level Submission) Assume that on December 31, 2016, 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. 2. 3. The agreement requires equal rental payments of $66,074 beginning on December 31, 2016, The fair value of the building on December 31, 2016 is $483,462. The building has an estimated economic life of 12 years, a guaranteed residual value of $10,000, and an expected residual value of $8,000. 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 lesso Kimberly-Clark's incremental borrowing rate is 8% per year. The lessor's implicitrate is not known by Kimberly Clark. 4. 5. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided) Your answer is partially correct. Try again. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2016, 2017. and 2010. Kimberly Clark's fiscal year end is December 31. (Credit account titles are automatically intended when amounts entered. Do not indet manually Round answers to decimal places e 275) Delt Date Account Titles and Explanation 12/31/16 right-of-Use Asset Lease JUL 29255 Credit E/31/16 Right-of-Use Asset | Lease Lability 479257 (To record the lease) Lease Liability Cash 66074 (To record first lease payment) 12/31/17 Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset) Lease Uability interest Expense Cash (To record interest expense) Lease Liability 33019 Interest Expense 33055 Cash IT LUDOTI 66074 (To record interest expense) 12/31/18 Amortization Expense 47926 Right-of-Use Asset 47926 (To record amortization of the right-of-use asset) 35661 Lease Liability q interest Expense 30413 Cash 66074 (To record interest expense)