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Need help finding the lease liability on part C. Thank you! Assume that on December 31,2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to

Need help finding the lease liability on part C. Thank you! image text in transcribed
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Assume that on December 31,2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Sandhill Storage Company. The following information pertains to this lease agreement. 1. The agreement requires equal rental payments of $68,099 beginning on December 31,2024 . 2. The fair value of the building on December 31,2024 , is $498,137. 3. The building has an estimated economic life of 12 years, a guaranteed residual value of $10,000, and an expected residual value of $6,000. Kimberly-Clark depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. Kimberly-Clark's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Kimberly-Clark. 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 2024, 2025, and 2026. Kimberly-Clark's fiscal year-end is December 31. (List all debit entries before credit entrles. Credit account tities are automatically indented when amount is entered. Do not indent monually. If no entry is required, select "No Entry" for the occount titles and enter 0 for the amounts. Round answers to 0 decimal places eg. 5,275.) Suppose that in addition to the $68,099 annual rental payments, Kimberly-Clark is also required to pay $5,000 for insurance costs each year on the building directly to the lessor. Sandhill Storage. How would this executory cost affect the initial measurement of the lease liability and right-of-use asset? (Round answer to 0 decimal places, eg. 5,275.) Lease liability \$ eTextbook and Media List of Accounts Attempts: 1 of 3 used 1/31/25 Lease Liability Interest Expense Cash (To record interest expense) 31/26> Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset) 131/26 Lease Liability Interest Expense Cash (To record interest expense) 68099 31467 Suppose the same facts as above, except that Kimberly-Clark incurred legal fees resulting from the execution of the lease of $5,000, and received a lease incentive from Sandhill to enter the lease of $1,000. How would the initial measurement of the lease liability and right-of-use asset be affected under this situation? Right-of-use asset

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