Organic Markets reports operating lease information in its 2016 annual report (in millions). You determine that a discount rate of 6.0% is appropriate for Organic Markets and calculate the following. What economic liability ispotentially left off Organic Markets' balance sheet?Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments.Year20172018201920202021ThereafterMinimum operatinglease payments$6507838368528549,728$13,703Select one:O a. $8,358 millionOb. $13,703 million.Oc. $10,183 millionOd. $10,060 million.

Economic liability represents the current value of all the future expected liabilities.

Answered: Organic Markets reports operating lease…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 1AIC

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