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The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: Year 2: Year
The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: Year 2: Year 3: Year 4: $19,000 $24,000 $29,000 $34,000 An appropriate discount rate is 7 percentage, yielding a present value of $88,331. a-1. If the lease is an operating lease, what will be the initial value of the right-of-use asset? Initial value of the right-of-use asset IS 81,556 a-2. If the lease is an operating lease, what will be the initial value of the lease llability? Initial value of the lease liability $ 81,566
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