What would be the balance of the lease obligation

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Reference no: EM131959228

On January 1, 2016, Pearson Company signed a lease agreement requiring six annual payments of $60,000, beginning December 31, 2016. The lease qualifies as a capital lease. Pearson's incremental borrowing rate was 9% and the lessor's implicit rate, known by Pearson, was 10%. The present value factors of an ordinary annuity of $1 for six periods for interest rates of 9% and 10% are 4.48592 and 4.35526, respectively.

What would be the balance of the lease obligation on January 1, 2017, for financial reporting purposes after the lease paymen? (round answers to the nearest dollar)?

Reference no: EM131959228

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