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A firm enters into a 5-year lease. The Present Value of the Lease Payments is $42,000. The firm trying to determine lease liability at the
A firm enters into a 5-year lease. The Present Value of the Lease Payments is $42,000. The firm trying to determine lease liability at the start of the lease. Assuming a discount rate of 5%, what is the lease liability if: A: Lease includes an unguaranteed residual of $5,000. The leased asset is expected to be worth $2,000 at the end of the lease. B: Lease includes a guaranteed residual of $5,000. The leased asset is expected to be worth $5,000 at the end of the lease. O Lease A: $44,351 Lease B: $42,000 O Lease A: $44,351 Lease B: $45.918 O Lease A: $42,000 Lease B: $42,000 O Lease A: $42,000 Lease B: $45.918 O None are correct
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