CHAPTER $2$F: LEASES

Question $2$

The ageement requires equal rental payments of $$67,299$ beginning on December $31,2024,$

The fair value of the bulding on December $31,2024,$ is $$492\mathrm{.}571.$

The lease is norvenewable. At the termination of the lease. the building reverts to the lessor

Kimberly$-$Clark's incremental borrowing rate is $8\%$ per year. The lessor's implicit rate is not known by Kimberly$-$Clark.

Click here to view factor tables.

$($For calculation purposes, use $5$ decimel places as displayed in the foctor table provided$)$

$($a$)$

Account Titles and Explanation

Debit

Credit

$$

$($To record the lease$)$

$$

$$

$$

$$

$($To record first lease payment$)$

$$

$$

$$

$($To record amortisation of the right$-$of$-$use asset$)$

$$

$$

$$

$$

$$

$$

$$

$($To record interest experse$)$

$$

$$

$$

$$

$$

$($To record amonisation of the right$-$of$-$use asset$)$

$$

$$

$$

$$

$$

$$

$$

$($To record interest experse$)$