Question:On January 1 of Year 1, XYZ Company leases equipment under a capital lease that calls for five payments of $25,000 at the end of each year. The first payment is due on December 31 of Year 1. Using 12 percent interest, the present value of the lease liability is $90,000 on January 1 of Year 1. What amount would XYZ Company report as the lease liability on its December 31 Year 1 Balance Sheet? 

A $79,200 
B $83,000 
C $100,000 
D $75,800 

+ Answer
A 

+ Explanation
Answer not sure

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Md. Habib Ullah

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