On January 1, 2016, Johnstone leased an office building. Terms of the lease require Johnstone to make 20 annual lease payments of $137,000 beginning on January 1, 2016. An 10 percent interest rate is implicit In the lease agreement. At what amount should Johnstone record the lease liability on January 1, 2016, before any lease payments are made?

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Table or calculator function: Payment: n = i = Liability: Table or calculator function: Payment: n = i = Liability:

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Amount to be recorded is present value of minimum lease payments ... View the full answer