Question 10 options: On January 1, 2014, Digital, Inc. leased heavy machinery fr

Question

Question 10 options: On January 1, 2014, Digital, Inc. leased heavy machinery from Young Leasing Company. The terms of the lease require annual payments of $15,000 for eighteen years beginning on December 31, 2014. The interest rate on the lease is 15%. Assume the lease qualifies as a capital lease. Calculate the amount of the lease liability at December 31, 2015 that would be classified as a current liability. Enter your answer with two places after the decimal point (i.e., $123,987.60).

***You will need to use the time value of money factors below to answer this question.***

Explanation / Answer

$124,586.25

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