Measurement of the lease liability.

Hi, I think it is a bit of a trick question but the 350,000 is the value of the future lease payments, so will not include the initial deposit, and is just the present value of the three lease rentals of 100,000. We therefore need to add this on to get the value of the right-of-use asset and corresponding liability. The deposit is then paid immediately at the start of the lease and therefore reduces the outstanding liability value as we DR Liability CR Bank with the deposit payment. Thanks