Dunières leases a workshop; lease payments are made in arrears and their present value at the commencement date is 210,000. At the commencement date, Dunières pays an intermediary a commission of 6,000, which, according to the case data, is an initial direct cost of the lease. There are no lease incentives and no restoration costs. Record the entry at the commencement date.
- Present value of the lease payments not yet paid
- 210,000
- Initial direct costs paid at the commencement date
- 6,000