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How can $500,000 in payments have a PV of $540,000?
…Actually yeah, that’s what I’d like to know. 
My professor in the CFA Prep Course I am doing wrote this question. You can bet I’ll be questioning him on that.
Can the question not be solved then given this spurious piece of information?
Indeed it can: in an operating lease the lessee records nothing on its balance sheet.
Here’s the first of a set of articles I wrote on leases that may help: http://financialexamhelp123.com/leases-general/.
Thank you very much, a great help as always. I queried the PV issue with my tutor, whose response was as follows:
“This tests your knowledge of treatment of leases. If a lease is structured as an operating lease, the lessee does not show any assets or liabilities on its books. If the question specified that it was a capital or direct finance lease, then the PV of those payments would have been shown as an asset and also as debt/liability.”
Still, where is the PV of $570,000 coming from? Is that information of relevance in answering this question?
You’re welcome.
I agree that the PV amount is not relevant to this question. Nevertheless, it demonstrates a lack of attention to detail. I’d be ashamed if I’d posed a question such as that.
Thanks again; I don’t know was that put in there to throw people off but it is factually incorrect and shouldn’t be included. One doesn’t even need to be studying CFA to determine that. One last question, would carrying value still be 0 under IFRS?
Yup.