Caleb's Corp disclosed the following minimum rental commitments under non-cancelable operating leases in its 2020 annual report (in millions). Operating Leases 2021 $24,424 2022 25,245 2023 25,065 2024 24,682 2025 24,087 Thereafter 292,668 Total $416,171 What is the approximate present value of the minimum lease payments? Assume a discount rate of 6.0%. Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments. Select one: • a. $373,713 million. b. $306,046 million c. $416,171 million d. $310,424 million x e. $255,007 million

Caleb's Corp disclosed the following minimum rental commitments under non-cancelable operating leases in its 2020 annual report (in millions). Operating Leases 2021 $24,424 2022 25,245 2023 25,065 2024 24,682 2025 24,087 Thereafter 292,668 Total $416,171 What is the approximate present value of the minimum lease payments? Assume a discount rate of 6.0%. Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments. Select one: • a. $373,713 million. b. $306,046 million c. $416,171 million d. $310,424 million x e. $255,007 million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

Caleb's Corp disclosed the following minimum rental commitments under non-cancelable operating leases in its 2020 annual report (in millions).
Thereafter
Total
Operating
Leases
2021 $24,424
2022
25,245
2023
25,065
2024
24,682
2025
What is the approximate present value of the minimum lease payments? Assume a discount rate of 6.0%.
Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments.
Select one:
@
.
24,087
292,668
$416,171
a. $373,713 million.
b. $306,046 million.
c. $416,171 million.
d. $310,424 million *
e. $255,007 million.

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