On January Garcia Supply leased a truck for a fouryear period, at which time possession of the
truck will revert back to the lessor. Annual lease payments are $ due on December of
each year, calculated by the lessor using a discount rate. Negotiations led to Garcia
guaranteeing a $ residual value at the end of the lease term. Garcia estimates that the
residual value after four years will be $
What is the amount to be added to the rightofuse asset and lease liability under the residual value
guarantee?
Note: Use tables, Excel, or a financial calculator. Enter your answer in whole dollars. FV of
$ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
