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On September 30, 2021, Ferguson Imports leased a warehouse. Terms of the lease require Ferguson to...

On September 30, 2021, Ferguson Imports leased a warehouse. Terms of the lease require Ferguson to make 10 annual lease payments of $70,000 with the first payment due immediately. Accounting standards require the company to record a lease liability when recording this type of lease. Assume a 8% interest rate. What amount should Ferguson record the lease liability on September 30, 2021, before the first payment is made? (

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Answer #1
Annual lease payments 70000
X PVAD of $1 7.24689 =1+(1-(1.08)^-9)/0.08
Lease liability on September 30, 2021 507282
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