How much is the lease liability on december

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Problem 1: On January 1, 2019. P Corp entered into a 10-year lease. Annual lease payments are 1,000,000 payables at the end of each year. The lessor expects a 10% return on the lease. If the equipment is to have a guaranteed residual value of 500,000 at the end of the lease, how much is the lease liability on December 31, 2019? (Use 2 decimal places for PV factor)

a) 5,754,000

b) 5,968,000

c) 6,335,000

d) 6,140,000

Reference no: EM132945067

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