N Corp. entered into a nine-year finance lease on a warehouse on December 31, 2021....
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N Corp. entered into a nine-year finance lease on a warehouse on December 31, 2021. Lease payments of $31,000, which includes maintenance services of $1,700, are due annually, beginning on December 31, 2022, and every December 31 thereafter. N Corp. does not know the interest rate implicit in the lease; N's incremental borrowing rate is 10%. The rounded present value of an ordinary annuity for nine years at 10% is 5.7590. What amount should N report as recorded lease liability at December 31, 2021?
a) $178,529.
b) $263,700.
c) $168,739.
d) $186,000.
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