On January 1,Gary Corporation signs a 6-year lease,which requires annual payments of $51,000 on December 31.The lease meets the requirements of a finance lease.Assuming an interest rate of 5%,calculate the value of the Lease Liability after the first payment.
A) $138,543.
B) $106,941.
C) $110,834.
D) $220,804.
E) $258,861.
Correct Answer:
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