What amount should entity report as finance lease liability

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Reference no: EM133901593

Problem

Entity a entered into a nine-year finance lease on a warehouse on december 31, 20x1. Lease payments of p52,000, which include real estate taxes of p2,000, are due annually, beginning on december 31, 20x1, and every December 31 thereafter. Entity a does not know the interest rate in the lease; entity a's incremental borrowing rate is 9%. Get the instant assignment help. What amount should entity a report as finance lease liability at December 31, 20x1?

Reference no: EM133901593

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