Business, 15.10.2019 18:30, Fsamrai

On january 1, espinoza moving and storage leased a truck for a four-year period, at which time possession of the truck will revert back to the lessor. annual lease payments are $10,000 due on december 31 of each year, calculated by the lessor using a 5% discount rate. if espinoza's revenues exceed a specified amount during the lease term, espinoza will pay an additional $4,000 lease payment at the end of the lease. espinoza estimates a 60% probability of meeting the target revenue amount. what amount should be added to the right-of-use asset and lease liability under the contingent rent agreement?

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On january 1, espinoza moving and storage leased a truck for a four-year period, at which time posse...