Question: RFV is a company operating in R-land, where the currency is the R$. On 1 January 20X0, RFV leases some furniture. Lease installments of R$200,000 are payable at the end of each year for ten years, commencing on 31 December 20X0. The interest rate implicit in the lease is 10%. At 1 January 20X0, the present value of future lease payments is R$1,229,000. RFV is preparing its financial statements for the year ended 31 December 20X0. What is the non-current liability that RFV should recognize in respect of this lease on 31 December 20X0? Solution A.R$84,810 B.R$200,000 C.R$1,067,090 D.R$1,151,900