The lease of a rotary press of Imprimerie Sorgues provides that at the end of the third year Sorgues must either buy the press or extend the lease for 2 years; both branches are realistic and one of them must be paid. At the commencement date, at the rate of the lease, the present value of the payments in the purchase branch is 119,100 and that of the extension branch is 112,400. What discounted amount does Sorgues include in the lease liability in respect of these in-substance fixed payments?
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