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A lessee enters into a 5-year lease agreement with annual payments of $10,000, beginning on January 1, Year 1. Lease Classification: Operating Lease Discount Rate:



    • A lessee enters into a 5-year lease agreement with annual payments of $10,000, beginning on January 1, Year 1.
    • Lease Classification: Operating Lease
    • Discount Rate: 8%

  • Calculate the lease liability at the commencement date using the present value formula.

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