1on september 30 2013 ferguson imports leased a


1.On September 30, 2013, Ferguson Imports leased a warehouse. Terms of the lease require Ferguson to make 10 annual lease payments of $55,000 with the first payment due immediately. Accounting standards require the company to record a lease liability when recording this type of lease. Assuming an 8% interest rate, at what amount should Ferguson record the lease liability on September 30, 2013, before the first payment is made?

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Accounting Basics: 1on september 30 2013 ferguson imports leased a
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