Question: The lease contract for a computer workstation requires quarterly payments of $2100 at the beginning of every three-month period for five years. The lessee would

The lease contract for a computer workstation requires quarterly payments of $2100 at the beginning of every three-month period for five years. The lessee would otherwise have to pay an interest rate of 10% compounded quarterly to borrow funds to purchase the workstation.
a. What amount will the lessee initially report in its financial statements as the long- term lease liability?
b. What will the liability be at the end of the fourth year?

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