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 3%) each year.

What is the lease payment amount Kingbird should use to record its right-of-use asset?

Lease payment

$enter the lease payment in dollars