ill LUFT PRIUS Assume that on December 31, 2019, Kimberly-Clark Corp. sigris 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 $67,499 beginning on December 31, 2019. The fair value of the building on December 31, 2019 is $494,021. The building has an estimated economic life of 12 years, a guaranteed residual value of $10.500, and an expected residual value of $7,100. Kimberly-Clark depreciates similar buildings on the straight-line method. The lease is no renewable. At the termination of the lease, the building reverts to the lessor. Kimberly-Clark's incremental borrowing rate is 3% per year. The lessor's implicit rate is not known by Kimberly-Clark 4. 5. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided) (a) Your answer is partially correct. 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 2019, 2020, and 2021. Kimberly-Clark's fiscal year-end is December 31. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Round answers to decimal places 5,275.) ate Debit Credit Account Titles and Explanation Right-of-Use Asset 1/19 4.90,733 490,733 Lease Liability (To record the lease) Lease Liability 1/19 67.499 Cash (To record first lease payment) 1/20 v Amortization Expense Lease Liability (To record amortization of the right-of-use asset) 1/20 Interest Expense Lease Liabet (To record interest expense) Amortization Expense Right-of-Use Asset 1/20 Amortization Expense Lease Liability (To record amortization of the right-of-use asset) 1/20 V Interest Expense Lease Liability Cash 67,499 (To record interest expense) Amortization Expense 1/21 > Right-of-Use Asset (To record amortization of the right-of-use asset) 1/21 Interest Expense Lease Liability Cash 67,499 (ToTecord interest expense) e Textbook and Media List of Accounts Save for Later Attempts: 2 of 5 used Submit (b) The parts of this question must be completed in order. This part will be available when you complete the part above (c) The parts of this question must be completed in order. This part will be available when you complete the part above (d) The parts of this question must be completed in order. This part will be available when you