WITH SOLUTION/COMPUTATION     59. On December 30, 2019, Rafferty Corp. leased equipment. Annual lease payments of P20,000 are  due December 31 for 10 years. The equipment’s useful life is 10 years, and the interest rate  implicit in the lease is 10%. The present value of the lease payments on December 30, 2019 before   the first lease payment is P135,000. The first lease payment was made on that date. What amount should Rafferty include in current liabilities for this lease in its December 31, 2019, balance sheet? a.    6,500        b. 8,500            c. 11,500        d. 20,000

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.