The Dunelle cooperative leases a cold room from 1 January 20X1. The initial lease liability is 250,000 (given) at a discount rate of 4 %; each lease payment of 56,000 is made at year-end, on 31 December. Determine the interest for 20X2 and the balance of the lease liability at 31 December 20X2.
- Initial lease liability
- 250,000
- Discount rate
- 4 %
- Lease payment made each 31 December
- 56,000