Question: Technoid Incorporated sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2024. The manufacturing cost of the computers was $21 million.
Technoid Incorporated sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2024. The manufacturing cost of the computers was $21 million. This noncancelable lease had the following terms: - Lease payments: $3,204,433 semiannually; first payment on January 1, 2024; remaining payments on June 30 and December 31 each year through June 30,2028. - Lease term: 5 years (10 semiannual payments). - No residual value; no purchase option. - Economic life of equipment: 5 years. - Implicit interest rate and lessee's incremental borrowing rate: 6% semiannually. - Fair value of the computers on January 1, 2024: $25 million. What is the outstanding balance of the lease liability in Lone Star's balance sheet on June 30,2024? Note: Round your answer to the nearest whole dollar. Multiple Choice $19,898,868 $19,298,877 $25,000,000 None of these answer choices is correct
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