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this is the work I had: To calculate the lease liability balance at December 31, 2030, after the third lease payment is made, we'll need
this is the work I had: To calculate the lease liability balance at December 31, 2030, after the third lease payment is made, we'll need to: 1. Calculate the present value (PV) of the lease payments at the beginning of the lease to establish the initial lease liability. 2. Make the lease payments according to the schedule. 3. Adjust the lease liability for the interest that accrues each year. 4. Determine the lease liability balance after the third payment is made on December 31, 2030. Let's start by calculating the present value of the lease payments. The lease terms require annual payments of $100,000 for four years, with the first payment due on December 31, 2028, which means that the payment at the end of 2028 is not discounted. Payments for the years 2029, 2030, and 2031 will be discounted using the present value of a lump-sum table for 1, 2, and 3 periods at 10% interest rate respectively. First, let's calculate the present value of the lease payments due at the end of 2029, 2030, and 2031, and then we'll proceed to calculate the lease liability balance after the payment made at the end of 2030. The initial lease liability at the beginning of the lease, on January 1, 2028, is $348,600. After the first lease payment is made on December 31, 2028, the lease liability decreases to $248,600. At the end of 2029, after accruing interest and making the second payment, the lease liability is $173,460. Finally, after the third lease payment is made on December 31, 2030, an
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