What amount should nordstrom report as lease liability

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Reference no: EM132808877

Problem 1: Nordstrom Company entered into a nine-year finance lease of a warehouse on December 31, 2016. Lease payment of P520,000 which includes real estate taxes and other executory cost of P20,000 are due annually beginning December 31, 2017 and every December 31 thereafter. The interest rate implicit in the lease is 9%. The rounded present value of an ordinary annuity of 1 for nine years at 9% is 5.60. What amount should Nordstrom report as lease liability on December 31, 2016?

Reference no: EM132808877

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