Question

On January 1, 20X5, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $10,000 annually, beginning December 30, 20X5 and continuing each year for 30 years. The lease qualifies as a finance lease. On January 1, 20X5, the present value of the lease payments is $112,500 at the 8% interest rate implicit in the lease. In Blaugh's December 31, 20X5 balance sheet, the finance lease liability should be

Answer 1

Answer

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Explanation  

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