On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the lessor. Annual lease payments are $20,000 due on December 31 of each year, calculated by the lessor using a 5% discount rate. Negotiations led to Ramirez guaranteeing the lessor a $74,000 residual value at the end of the lease term although Ramirez estimates that the residual value after four years will be $70,000. Required:
What is the amount to be added to the right-of-use asset and lease payable under the residual value guarantee?