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 Sheffield 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?
Exercise 21A-4 a-dAssume that on December 31, 2016, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Sheffield Storage Company. The following information pertains to this lease agreement.1.The agreement requires equal rental payments of $66,599 beginning on December 31, 2016.2.The fair value of the building on December 31, 2016 is $487,267.3.The building […]
