Question: M & O Company is preparing an Excel spreadsheet for a 5 - year finance lease. The implicit interest rate in the lease is 6

M & O Company is preparing an Excel spreadsheet for a 5-year finance lease. The implicit interest rate in the lease is 6%. The beginning of the lease is January 1. Lease payments are made each December 31. A portion of the spreadsheet appears as follows:
ABCDE1Effective rate:0.062Lease payments:100,0003Term to maturity in years:545PeriodCash PaymentInterest ExpenseChange in BalanceOutstanding Balance607182
What formula should M & O use in cell E8 to calculate the carrying value of the lease payable after the second lease payment?

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