On January 1, 2020, Blaugh Company signed a long-term lease for an office building. The terms of the lease required Blaugh Company to pay P100,000 annually beginning December 31, 2020, and continuing each year for 30 years. On January 1, 2020, the present value of the lease payments is P1,125,000 at the 8% interest rate implicit in the lease. What amount should be reported as lease liability on December 31, 2020
On January 1, 2020, Blaugh Company signed a long-term lease for an office building. The terms of the lease required Blaugh Company to pay P100,000 annually beginning December 31, 2020, and continuing each year for 30 years. On January 1, 2020, the present value of the lease payments is P1,125,000 at the 8% interest rate implicit in the lease. What amount should be reported as lease liability on December 31, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Blaugh Company signed a long-term lease for an office building. The terms of the lease required Blaugh Company to pay P100,000 annually beginning December 31, 2020, and continuing each year for 30 years. On January 1, 2020, the present value of the lease payments is P1,125,000 at the 8% interest rate implicit in the lease. What amount should be reported as lease liability on December 31, 2020?
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