What is the net carrying value of the lease liability in Lone Star's June 30, 2009 balance sheet? Round your answer to the nearest dollar.
A)$15,943,154
B)$17,533,246
C)$21,000,000
D)None of these is correct.

Question

Quizplus · Accepted Answer

The net carrying value of the lease liability is the present value of the remaining lease payments minus the present value of the residual value. The present value of the remaining lease payments is $21,000,000 and the present value of the residual value is $3,056,846. Therefore, the net carrying value of the lease liability is $21,000,000 - $3,056,846 = $17,533,246.

What Is the Net Carrying Value of the Lease Liability