hard · CFA Level I fsa
Pinion Logistics entered into a 5-year lease for a warehouse with annual year-end payments of 100,000. The incremental borrowing rate is 8%. Pinion reports under IFRS and capitalizes the lease. The initial lease liability is recorded at 399,271.
What is the carrying amount of the lease liability on Pinion's balance sheet at the end of the first year (after the first payment)?
- 331,213
- 299,271
- 319,417
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