Question
On January 1, 2018 Lessee Company entered into a five-year lease which required annual payments of $60,000. The first payment was due at the inception
On January 1, 2018 Lessee Company entered into a five-year lease which required annual payments of $60,000. The first payment was due at the inception of the lease. The present value of the minimum lease payments to record the lease was $250,192; the applicable discount rate was 10%. Lessee Company treated the lease as a capital lease under ASC 840. What is the balance of Lessee Company's lease liability as of December 31, 2018?
- $190,192
- $149,211
- $209,211
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
