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Business, 20.10.2019 05:30 19cmulett

On january 1, 2004, digital, inc. leased heavy machinery from young leasing company. the terms of the lease require annual payments of
$20,000 for twenty years beginning on december 31, 2004. the interest rate on the lease is 10%.
assume the lease qualifies as acapital lease.
1. calculate the amount of the lease liability at december 31, 2005 that would be classified as a current liability.
2. calculate the balance in the lease liability account on december 31, 2005 after the second lease payment is made. you!

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