Answer:
$800,239.40
Explanation:
Calculation for the balance in Francisco lease liability at December 31, 2022
First step is to find the Liability for the year end 31st December 2021
Using this formula
Liability as on 31st December 2021=Initial Value of the Liability - Annual Payment
Let plug in the formula
31st December 2021 Liability =$1,013,854-$150,000
Liability as of 31st December 2021=$863,854
Second step is to find Interest for the Year 2022
Interest =$863,854×10%
Interest =$86,385.40
Third step is to less the interest amount from the Annual payment
Annual Payment $150,000- Interest $86,385.40
=$63,614.60
Last step is to find the balance in the lease liability at December 31, 2022
Lease liability balance = $863,854 -$63,614.60
Lease liability balance=$800,239.40
Therefore What should be the balance in Francisco lease liability at December 31, 2022 will be $800,239.40
