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Inci Inc. leases computers to VM on January 1, 2021. The cost of the computers was $12 million. This noncancelable lease had the following terms:
Inci Inc. leases computers to VM on January 1, 2021. The cost of the computers was $12 million. This noncancelable lease had the following terms: Lease payments: $2,466,754 semiannually; first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025. . Lease term: five years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: five years. Implicit interest rate: 5% semiannually. Fair value of the computers at January 1, 2021: $20 million. What is the outstanding balance of the lease liability in VM's June 30, 2021, balance sheet? O a. $15,943,154 O b. $20,000,000 O c. $17,533.246 O d. $12,000,000 O e. $14,273,558
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