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Kingbird Fashion Company enters into a lease arrangement with Highpoint Leasing for 5 years. Kingbird agrees to pay 3 % of its net sales as

Kingbird Fashion Company enters into a lease arrangement with Highpoint Leasing for 5 years. Kingbird agrees to pay 3% of its net
sales as a variable lease payment. Kingbird does not pay any fixed payments. Kingbird is a highly successful company that has achieved
over $1,000,000 in net sales over the last 7 years. Both Kingbird and Highpoint forecast that net sales will be a much greater amount
than $1,000,000 in subsequent years. As a result, it is highly certain that Kingbird will make payments of at least $30,000( $1,000,000
0.03) each year.
What is the lease payment amount Kingbird should use to record its right-of-use asset? (Do not leave any answer field blank. Enter 0 for
amounts.)
Lease payment
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