The present liability of Red Sun Rising Corp. is $17,138,513.78.
What is a lease agreement?
An agreement known as a lease specifies the conditions under which one party consents to rent an asset, in this case, property, owned by another party. It ensures that the lessee, also known as the tenant, will have access to the property and, in return, will make timely payments to the lessor for a predetermined length of time.
Given,
Annual Payment = $2,000,000
Years = 10 years
rate = 3.61%
Required to calculate Present laibility=?
The calculation is shown in the file attached below:
Thus, the total liability of Red Sun Rising Corp. is $17,138,513.78.
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