On January 1#, 2020, DAMAC leases equipment for an annual rent of $30,000. This is a capital lease and its term is five

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answerhappygod
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On January 1#, 2020, DAMAC leases equipment for an annual rent of $30,000. This is a capital lease and its term is five

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On January 1#, 2020, DAMAC leases equipment for an
annual rent of $30,000. This is a capital lease and its term
is
five years. The interest rate for the lease is 8%. The
residual
value of the equipment is zero. Annuity table indicates that
the present value of an annual lease of S1 for five years at
8%
rate is $3.6. The fair value of the leased equipment equals
to
the present value of rentals.
Find the value of the lease obligation that you report by
December 31#, 2020.
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