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on january 1 garcia supply leased a truck for a...

Question: on january 1 garcia supply leased a truck for a...

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On January 1, Garcia Supply leased a truck for a five-year period, at which time possession of the truck will revert back to the lessor Annual lease payments are $14,500 due on December 31 of each year, calculated by the lessor using a 6% discount rate Negotiations led to Garcia guaranteeing a $67,600 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $65.700. (FV of S1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee? Amount to be added

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