What is the net carrying value of the lease liability in Lone Star's June 30, 2013, balance sheet? Round your answer to the nearest dollar.
A)$15,943,154.
B)$17,533,246.
C)$21,000,000.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The net carrying value of the lease liability is the present value of the lease payments minus the present value of the lease receivable. The present value of the lease payments is $21,000,000, and the present value of the lease receivable is $3,056,846. Therefore, the net carrying value of the lease liability is $21,000,000 - $3,056,846 = $17,943,154.

What Is the Net Carrying Value of the Lease Liability