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 $2,700,000 (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. Both the lessor and the lessee are on a calendar-year basis. Click here to view factor tables. [For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. Prepare the journal entries that Marin should make in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Buildings 3,200,000 Cash 3,200,000 [To record cost of the building) Cash 275,000 Unearned Lease Revenue 275,000 [To record receipt of lease payment} Unearned Lease Revenue 275,000 Lease Revenue 275,000 "To record the recognition of the revenue each period Depreciation Expense 64,000 Accumulated Depreciation-Leased Buildings 64,000 [To record depreciation expense on the leased asset) eTextbook and Media List of Accounts Attempts: 1 of 4 used Using multiple attempts will impact your score. 50%% score reduction after attempt 3 (b) Your Answer Correct Answer [Used) Prepare the journal entries that Cullumber should make in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Right-of-Use Asset 1,923,694 Lease Liability 1,923,494 [To record the lease) Lease Liability 275,000 Cash 275,000 [To record lease payment) Lease Expense 275,000 Right-of-Use Asset 126,4 18 Lease Liability 148,382 (c) If Cullumber paid $20,000 to a real estate broker on January 1, 2020, as a fee for finding the lessor, what is the initial measurement of the right-of-use asset? Right-of-use asset $