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Calculate the present value of the lease payments

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Reference no: EM133013138

Question - On June 30, 2021, Exploration Inc. signs a lease requiring quarterly payments each year for the next five years. Each of the 20 quarterly payments is $29,122.87, with the first lease payment beginning September 30. The company's normal borrowing rate is 6%. Use PVA of $1.

Required -

1. Calculate the present value of the lease payments.

2. Record the lease on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Reference no: EM133013138

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