Question: Technold Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $17 million.
Technold Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $17 million. This noncancelable lease had the following terms: Lease payments: $2.794 325 semiannually: first payment at January 1, 2021: remaining payments at June 30 and December 31 each year through June 30, 2025, 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: 7% semiannually. Fair value of the computers at January 1, 2021 $21 million . What is the outstanding balance of the lease liability in Lone Star's June 30, 2021, balance sheet? (Round your answer to the nearest whole dollar.)
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