GYC Auto leased a machine from SF Distributors on January 1, 2018. The lease is non-cancelable and requires 10 payments of $15,000, with the first payment due 1/1/18 and all subsequent payments due each January 1. The fair value of the machinery leased is $115,000. The implicit interest rate of the lease is 7%.
What amount will GYC debit to Leased Machinery at the inception of the lease? (round your answer to the nearest dollar)

$112,728
$105,354
$106,950
$115,000

Answer rating: 100% (QA)

Lease liability Annual pay... View the full answer