Lawson leased equipment from Tirado on January 1 of the current year.The lease is a 12 year lease with annual payments of $175,000 due on each January 1,beginning with the current year.The present value of the lease is $1,424,318.Lawson's incremental borrowing rate is 10%; Lawson knows that Tirado's implicit interest rate is 8%.What is the balance of Lawson's lease liability at December 31 or the current year?
A)$1,136,636
B)$1,249,318
C)$1,017,396
D)$1,143,814

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The Answer of Lawson leased equipment from Tirado on January 1 of the current year.The lease is a 12 year lease with annual payments of $175,000 due on each January 1,beginning with the current year.The present value of the lease is $1,424,318.Lawson's incremental borrowing rate is 10%; Lawson knows that Tirado's implicit interest rate is 8%.What is the balance of Lawson's lease liability at December 31 or the current year?
A)$1,136,636
B)$1,249,318
C)$1,017,396
D)$1,143,814

Lawson Leased Equipment from Tirado on January 1 of the Current