The following is an extract from a lease payment schedule for Lessee Pty Limited.What is the present value of the lease liability at 30 June 2012? $$\begin{array} { | c | r | c | c | }
\hline \text { Date } & \begin{array} { c }
\text { Lease } \
\text { payment }
\end{array} & \begin{array} { c }
\text { Interest } \
\text { expense }
\end{array} & \begin{array} { c }
\text { Present value of } \
\text { lease liability }
\end{array} \
\hline 01 \text { July } 2011 & & & 21506 \
\hline \text { 30 June 2012 } & 3500 & 2,151 & ? \
\hline
\end{array}$$

Question

The following is an extract from a lease payment schedule for Lessee Pty Limited.What is the present value of the lease liability at 30 June 2012? $$\begin{array} { | c | r | c | c | } 
\hline \text { Date } & \begin{array} { c } 
\text { Lease } \
\text { payment }
\end{array} & \begin{array} { c } 
\text { Interest } \
\text { expense }
\end{array} & \begin{array} { c } 
\text { Present value of } \
\text { lease liability }
\end{array} \
\hline 01 \text { July } 2011 & & & 21506 \
\hline \text { 30 June 2012 } & 3500 & 2,151 & ? \
\hline
\end{array}$$

Quizplus · Accepted Answer

The present value of the lease liability at 30 June 2012 can be calculated by taking the initial present value of the lease liability (21,506), adding the interest expense for the year (2,151), and then subtracting the lease payment made (3,500). This results in 21,506 + 2,151 - 3,500 = 20,157.

The Following Is an Extract from a Lease Payment Schedule