Question 1 Splish Brothers Fashion Company enters into a lease arrangement with Highpoint Leasing for 5 years. Splish Brothers agrees to pay 7% of its net sales as a variable lease payment. Splish Brothers does not pay any fixed payments. Splish Brothers is a highly successful company that has achieved over $1,200,000 in net sales over the last 7 years. Both Splish Brothers and Highpoint forecast that net sales will be a much greater amount than $1,200,000 in subsequent years. As a result, it is highly certain that Splish Brothers will make payments of at least $84,000 ($1,200,000 796) each year What is the lease payment amount Splish Brothers should use to record its right-of-use asset? Lease payment Question Attempts: 0 of 1 used