• Whiterun Ltd owned a boat that has an economic useful life of 6 years as at 1 July 2020. On 1 July 2020 the company leased the boat to Riverwood Ltd for three years. In the lease agreement, Riverwood Ltd agreed to guarantee $5 000 residual value. The annual lease payment is $30,000. Lease payments are to be made in arrears. The interest rate implicit in the lease for Riverwood Ltd is 5%. What is the amount of Riverwood Ltd's lease liability on the commencement day of the lease?
  
  $86 017
  $56 017
  $90,012
  $80 012
  
  
  

Answer rating: 100% (QA)

86017 Yr Annual Payment Intere... View the full answer