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  3. on january 1, garcia supply leased a truck for a f

On January 1, Garcia Supply leased a truck for a five-year period, at which time...

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Accounting

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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 $16,500 due on December 31 of each year, calculated by the lessor using a 4% discount rate. Negotiations led to Garcia guaranteeing a $79,300 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $78,100. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD 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? (Round your answer to the nearest whole number.) Amount to be added

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