The Following Is an Extract from a Lease Payment Schedule

question 50

Multiple Choice

The following is an extract from a lease payment schedule for Lessee Pty Limited.What is the present value of the lease liability at 30 June 2012? $$\begin{array} { | c | c | c | c | } \hline \text { Date } & \begin{array} { c } \text { Lease } \\\text { payment }\end{array} & \begin{array} { c } \text { Interest } \\\text { expense }\end{array} & \begin{array} { c } \text { Present value of } \\\text { lease liability }\end{array} \\\hline 01 \text { July } 2011 & & & 21506 \\\hline \text { 30 June 2012 } & 3500 & 2,151 & ? \\\hline\end{array}$$

• A)€18 006
• B)€19 355
• C)€25 006
• D)€20 157

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Definitions:

Basalt Lava

Molten rock that emerges from the earth during a volcanic eruption, characterized by its high iron and magnesium content, and low viscosity.

Flood Basalts

Extensive flows of basaltic lava that cover large areas of land or the ocean floor, resulting from massive eruptions.

Magma Generation

The process by which molten rock (magma) is formed, typically through the melting of the Earth's mantle or crust under certain temperature and pressure conditions.

Dikes

Underground structures formed when magma forces itself across rock layers and solidifies.