1. On January 1, 20x1, Entity X enters into a 3-year lease of equipment for an annual rent of F100,000 payable at the end of each year. The equipment has a remaining useful life of 10 years. The interest rate implicit in the lease is 10% while the lessee's incremental borrowing rate is 12%. Entity X uses the straight-line method of depreciation. The relevant present value factors are as follows: - PV of an ordinary annuity of P1 @10%, n=3 ............ 2.48685 - PV of an ordinary annuity of P1 @12%, n=3 ............ 2.40183 How much is the lease liability to be recognized by Entity X on initial recognition? a. 240,183 c. 252,314 b. 248,685 d. O