Determine what will current liability in fire ltd statement

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On 1 October 2019 fire Ltd acquire an item of plant under a 5 year agreement . the lease require an immediate deposit of $ 2 000 000 with 5 payments of $6 000 000 payable annually in arrears commencing on 30 September 2020. the present value of the future lease payments was $ 22 746 000. the agreement had an implicit finance cost of 10% p.a.

Question 1: What will be the current liability in fire Ltd's statement of financial position as at 30 September 2020 in respect of this lease?

Reference no: EM132531738

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