Homework Answers
Solution:
Present value of lease payment = $3,449,757 * cumulative PV factor at 4% for 10 periods
= $3,449,757 * 8.43533 = $29,099,839
Outstanding liability on June 30 = $29,099,839 + ($29,099,839 - $3,449,757)*4% - $3,449,747 - $3,449,757
= $29,099,839 + $1,026,003 - $3,449,757 - $3,449,757
= $23,226,328
Hence last option none of the answer choices are correct.
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