At the beginning of current year , EDSA company leased a building with the following information: 1) Annual fixed payment in advance at the beginning of each lease year -1,000,000 2) initial direct cost paid 350,000 3) Lease incentive received -150,000 4) Lease bonus paid to lessor before commencement of lease- 100,000 5) Present value of cost of restoring the building as required by contract discounted at 6% -200,000 6) Purchase option that is not reasonably certain to be exercised - 300,000.00 7) Lease term 5 years 8) Implicit interest rate 8% 9) PV of an annuity of 1 in advance at 8% for 5 periods 4.31 10) PV of 1 at 8% for 5 periods .68. What is the initial lease liability?

4,514,000.00

4,764,000.00

4,310,000.00

4,614,000.00

EDSA company issued 2,000,000 face value of 10 year bonds on January 1. The bonds pay interest January 1 and July 1 and had a stated rate of 10%. The market rate of interest is 8%. EDSA pay bond issue cost amounting to 100,000.00. What is the issue price of the bonds?

1,978,000

2,178,000

2,159,000

2,162,000

EDSA Company provided the following information on December 31, 2020. a) 2 year Notes payable trade - 3 million b) Bank loans- 2 million c) Advances from officers 500,000.00 d) Accounts payable non- trade e) Bank Balance - BDO 500,000.00 f) Bank overdraft -BDO 300,000.00 g) Withholding tax payable 1,000,000.00 h) Mortgage payable -3,800,000.00 I) Income tax payable 800,000.00 J) Estimated warranty liability -600,000.00 K) estimated damages payable by reason of breach of contract- 700,000.00 L) Accrued liabilities- 900,000.00 M) Estimated premium liability- 200,000.00 N) Claims for increase in wages by employees covered in a pending lawsuit - 3,500,000.00 O) Contract entered into for the construction of building 5,000,000.00. Compute the total current liabilities.

10,700,000.00

12,000,000.00

15,000,000.00

14,700,000.00