Richmond Inc. leased equipment from Sunshine Company on January 1,2024. The lease is a 10-year...

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Accounting

Richmond Inc. leased equipment from Sunshine Company on January 1,2024. The lease is a 10-year lease with annual payments of $60,000 due beginning on January 1,2024, and at each December 31 thereafter through 2032. The present value of the lease payments is $486,469. Sunshine's implicit rate of 5% is known by the lessee. What should be the balance in Richmond's lease liability at December 31,2024?
$426,469.
$387,793.
$400,583
$390,792
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