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

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Accounting

On January 1, Garcia Supply leased a truck for a three-year
period, at which time possession of the truck will revert back to
the lessor. Annual lease payments are $17,000 due on December 31 of
each year, calculated by the lessor using a 5% discount rate.
Negotiations led to Garcia guaranteeing a $47,700 residual value at
the end of the lease term. Garcia estimates that the residual value
after four years will be $46,400.(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?Amount to be Added:

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