Assume the lease qualifies as a capital lease

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On January 1, 2004, Digital, Inc. leased heavy machinery from Young Leasing Company. The terms of the lease require annual payments of $100,000 for nine years beginning on December 31, 2004. The interest rate on the lease is 10%. Assume the lease qualifies as a capital lease. Calculate the balance in the lease liability account on December 31, 2005 after the second lease payment is made. Do not use decimals in your answer.

Reference no: EM131211170

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