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Determining Amounts in Operating Lease-Lessee Kulver's Inc. leases equipment from Equip Inc. on...

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Accounting

Determining Amounts in Operating Lease-Lessee
Kulver's Inc. leases equipment from Equip Inc. on January 1 under a 3-year operating lease. Kulver's agrees to pay Equip Inc. $15,000 annually with the first payment due on January 1. As an incentive for Kulver's to sign the lease by January 1, Equip Inc. paid Kulver's Inc. $700. Kulver's also incurred legal fees for the review of the lease agreement ( $200) and salaries for employees involved in negotiating the lease ($1,300). Assuming an incremental borrowing rate of 7% for Kulver's Inc., determine the value of the lease liability and the right-ofuse asset on January 1 for Kulver's.
Note: Round your answers to the nearest whole dollar.
\table[[Lease liability,$,11,620x
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