On January 1, 2020, Marin Co. leased a building to Cullumber Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,700,00 (unguaranteed). 2. The leased building has a cost of $3,200,000 and was purchased for cash on January 1,2020 . 3. The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. 4. Lease payments are $275,000 per year and are made at the beginning of the year. 5. Cullumber has an incremental borrowing rate of 9%, and the rate implicit in the lease is unknown to Cullumber. 6. Both the lessor and the lessee are on a calendar-year basis, \begin{aligned} Date \( & \) Account Titles and Explanation \hline \( 1 / 1 / 20 & \) Right-of-Use Asset \hline \end{aligned} Lease Liability (To record cost of the building) 275000 (To record receipt of lease payment) Right-of-Use Asset (To record the recognition of the revenue each period) (To record depreciation expense on the leased asset)