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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 years. Kingbird agrees to pay 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 $ in net sales over the last years. Both Kingbird and Highpoint forecast that net sales will be a much greater amount
than $ in subsequent years. As a result, it is highly certain that Kingbird will make payments of at least $ $
each year.
What is the lease payment amount Kingbird should use to record its rightofuse asset? Do not leave any answer field blank. Enter for
amounts.
Lease payment
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