I have an exercise, which I'm not clearly able to solve.
I hope someone can help me.

On January 1, 1997, Phillips, Inc leaseda a new machine from U.S.Leasing. The specific information on the lease is as follows:
lease inception: January 1, 1997
annual rental payment at Dec. 31 of each year: $51,352
ecenomic life of the machine: 8 years
market value of the machine: $275 000
interest rate said by phillips, Inc.: 10%
End of 7- year lease term : Dec.31, 2003

There is also an annuity table for the period and the rate.
if you take the 7 years and the 10% you get 4,868 from the table.

On January1, 1997, Phillips, Inc should record a lease liability of:

- $275,000
- $359,464
- $ 0
- $ 250,000

I was assuming that I calculate this value by taking the annual rent and mulitply it with the years, which would give me the second option.
But then I would not need the annuity table.
but any other calculation with the annuity rate and the rental gives me something around $249,xxx and I learnt that in this kind of test the numbers must match and not about the value.

By my reckoning, the PV of your min lease payments is $51352 x 4.8684 = $250,002.08, or if you take it to 3 decimal places it's $51352 x 4.868 = $249,981.54.

Either way it looks like the answer in the choices has been rounded to $250,000.

As the PV of minimum lease payments is lower than the Market Value, then your answer is $250,000.