Question: Let's assume Este Lauder entered into a five-year operating lease on January 1, 2021, for the new store in Chicago. They agree to pay $150,000

Let's assume Este Lauder entered into a five-year operating lease on January 1, 2021, for the new store in Chicago. They agree to pay $150,000 in year 1, $155,000 in year 2, $159,000 in year 3, $163,000 in year 4, $167,000 in year 5. Payments will be made at the end of each year.

First, calculate the ELC's annual straight-line lease expense. (in thousands of dollars, round to the nearest integer)

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