The Following Is an Extract from a Lease Payment Schedule

question 48

Multiple Choice

The following is an extract from a lease payment schedule for Lipton Pty Plc.What is the present value of the lease liability at 30 June 2012? $\begin{array}{|r|l|l|c|}\hline {\text { Date }} & \begin{array}{l}\text { Lease } \\\text { payment }\end{array} & \begin{array}{l}\text { Interest } \\\text { expense }\end{array} & \begin{array}{l}\text { Present value of } \\\text { lease liability }\end{array} \\\hline \text { 1-Jul-11 } & & & 17039 \\\hline 30 \text {-Jun-12 } & 3500 & 1704 & ? \\\hline\end{array}$

• A)€13 539
• B)€15 335
• C)€15 243
• D)€11 835

---

Definitions:

Market Power

The ability of a company to manipulate price by controlling supply or dominating the market.

Nineteenth Century

The period from January 1, 1801, through December 31, 1900, marked by significant industrial, cultural, and political changes worldwide.

Oligopoly

A market structure characterized by a small number of large firms that dominate the market, often leading to limited competition.

Railroads

Transportation systems consisting of tracks on which trains travel to carry goods and passengers over long distances.