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Pioneer has agreed to make annual lease payments in arrears of $32,549.08. The lease is for 10 years which is also the useful life of
Pioneer has agreed to make annual lease payments in arrears of $32,549.08. The lease is for 10 years which is also the useful life of the equipment. There is no bargain purchase option or guaranteed residual value for the equipment. The discount rate for the lease is 10%. Assuming the initial right to use asset and the lease liability is $200,000 at the lease inception, what is carrying amount of the lease liability after the first payment at the end of year 1.
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$167,450.92
$200,000
$187,450.92
$180,000
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