1 22 View Policies Current Attempt in Progress On January 1, 2020, Carla Vista Corp., which uses IFRS, signs a 10-year, non-cancellable lease agreement to lease a specialty lathe from Liu Inc. The following information concerns the lease agreement. 1. The agreement requires equal rental payments of $76,935 beginning on January 1, 2020. 2. The lathe's fair value on January 1, 2020, is $500,000 3. The lathe has an estimated economic life of 12 years, with an unguaranteed residual value of $17,000. Carla Vista Corp. depreciates similar equipment using the straight-line method. 4. The lease is non-renewable. At the termination of the lease, the lathe reverts to the lessor. 5. Carla Vista's incremental borrowing rate is 10% per year. The lessor's implicit rate is not known by Carla Vista Corp. 6. The yearly rental payment includes $2,959.82 of executory costs related to insurance on the lathe. Assume this is a manufacturer/dealer lease. Click here to view the factor table PRESENT VALUE OF 1, Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUEUsing (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the right-of-use asset and lease liability and prepare the initial entry to reflect the signing of the lease agreement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round factor values to 5 decimal places, eg. 1.25124 and final answers to 2 decimal places, e.g. 5,275.25.) Date Account Titles and Explanation Debit Credit 1/1/20 List of AccountsPrepare an amortization schedule for the term of the lease to be used by Carla Vista. Use Excel. (Round answers to 2 decimal places, e.g. 5,275.25.) CARLA VISTA CORP. Lease Amortization Schedule (Lessee) Annual Payment Excluding Interest on Reduction Balance Executory Unpaid of Lease of Lease Date Costs Obligation Obligation Obligation S Jan. 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Jan. 1, 2023 Jan. 1, 2024 Jan. 1, 2025\fPrepare the journal entries on Carla Vista Corp's books to record the payments and expenses related to this lease for the year 2020 and 2021 as well as any adjusting journal entries at its fiscal year ends of December 31, 2020 and 2021. Carla Vista does not use reversing entries. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.25) Date Account Titles and Explanation Debit Credit 12/31/20 (To record depreciation expense.) 12/31/20 [To record interest.) 1/1/2114 21/20 (To record interest.) 1/1/21 (To record lease payment.) 12/31/21 (To record depreciation expense.) 12/31/21 (To record interest.) List of AccountsPresent Value of 1 (n) periods 2% 21/2% 3% 4% 5% 6% 7% 8% 9% 10% 1196 12% 15% 0.98039 0.97561 0.97087 0.96156 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 2 0.96117 0.95181 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 3 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75132 0.73119 0.71178 0.65752 4 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 5 0.90583 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 6 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50653 0.43233 0.67056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0-45235 0.37594 8 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 9 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0-50025 0.46043 0.42410 0.39092 0.36061 0.28426 10 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0-50895 0.46319 0.49241 0.38554 0.35218 0.32197 0.24719 11 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42885 0.36753 0.35049 0.31728 0.25748 0.21494 12 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.35554 0.31863 0.28584 0.25668 0.18691 13 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 14 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 15 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18370 0.12269 16 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.10687 17 0.71416 0,65720 0.60502 0.51337 0.43630 0.37136 0-31657 0.27027 0.23107 0.19785 0.16963 0.14564 0.09293 18 0.70016 0.64117 0.58739 0.49363 0.41952 0.35094 0.29586 0.25025 0.21199 0.17956 0.15282 0.13004 0.08081 19 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.07027 20 0.67297 0.61037 055368 0-45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.06110 al Calculators values can also be calculated using financial calculators. A financial calculator will perform the same calculation as a basic calculator, but it requires fewer steps ut. Basically, with a financial calculator, you input the future value, the discount rate, and the number of periods, and then tell it to calculate the present value. ation 3: 10 shows the required inputs for a present value calculation using a financial calculator.Table A.3 FUTURE VALUE OF AN ORDINARY ANNUITY OF 1 FVF-OA _10 1 10% 1.09000 1.00800 1/0000 1:09000 1,00000 1:00009 1.D0900 1.50060 1.00000 1.00600 2-02000 202500 2,03000 2.04000 2.05000 2.05000 2.08090 2.05000 1.09000 2.10000 2 1 1000 2.12000 1.00090 2.15000 3.06040 3.07563 3:09090 3412160 3.15250 3.18360 3.24640 3.27810 3.31000 3.34210 4.12161 4.15252 4.18963 4 24646 431013 4.87462 4.50611 4.57313 4.64100 3.37440 13.47250 4 70973 4.7 7933 4.98338 5.20404 5.25633 5.30914 5.41632 5.52563 5.63709 5.86660 5.98471 6.10510 6.22780 6.35285 6.30812 6.38774 6.46841 616329 6.80191 6.97532 17.23592 7 52834 8.14201 8.39384 9.48717 7.91286 8.11519 7.43428 7.54743 7.66246 7.89829 9.78327 8.75374 8.92280 9.20044 10.08901 1.06 680 8.98297 8.73612 8.69234 9:2142 9.54911 9.89747 10.63663 11.02847 11.43589 9.75463 9.95462 10.15911 10.58280 11.02656 11/49132 12.48756 13.02104 13.57948 14.16397 14.27566 11.85949 12.29960 13.72682 16.78584 10 94972 11.20338 11.46338 12.00611|12.57789 13.18079 14.48656 15 19293 15.93743 16 72201 17.54874 20.30372 12.16872 16.64549 7.5602 19.56143 20:65456 1341209 13.79565 14.19203 15.02581 15.91713 16.86994 18.93713 20.14072 21.38428 22 71319 24.13513 24.34928 29.00167 1033 15.14044 15.61779 16.62684 17.71298 18 88214 21.49530 22.95339 24.52271 26.21164 26 0291 1 34.35192 15.97394 16.51895 17.08632 18 29191 19.59863 21.01507 24.21492|26.01919 27.97498 30.09492 32 39250 40.50471 17.29342 17.93193 18.59891 20.02359 21.57856 23.27597 27.15211 29.36092 34 40536 32 27972 47.58041 21.82453 3 21.76159 23.69751 23.65749 25.67253 30.32428 33,00340 35.94973 39:18995 42 75328 25.84037 28 21289 39 75023 36.97371 40.54470 44 50084 28 88367 69.07509 85 23.41444 25.64541 28.13238 30.90565 37 45024 41.30134 45.59917 50.39593 55.74972 75.83656 23.94601 25.11687 27.67123 30.53900 33.75999 41.48626 46.01846 51 15909 56.95949 63.43968 83 21181 29 7 7808 8 33.06595 36.78559 57 27500 64.20285 72 05244|102 44358 28.86286 30.53678 34 24797 39.992 38.50521 43.39229 64.00250 72.26514 81.69574 36-61789 41.43048 46 99585 62.87334 71,40275 81.21431|92.50258 137.63164 3 60.89530 69.53194 79.54302 91-14788 104.60289 159.27538 30 42186 32.54904 34 42647 39.08260 44.50200 50.81558 46.76476 75.78981|8 32.03030 34.15776 36.45926 41.64591 47.72710 4.86451 88 49753 102-17415 1 18 15524 185.16784 038: 153.33387 1212.79802 36.01171 38.55904 44 31174 51.11345 59.15638 35 34432 37 91200 40.70963 47.08421 54.56913 63.705/7 37 05121 39.85990 42.93092 49 96758 58.40258 68 5281 1 9513 102.72314 38 79223 41.85630 45.21885 52.96629 62.32271 73.63980 103 26554 12.96822 2106984 143.07864 169.37401 285.56477 81729 190 69689 327 10408 214 58275 377 16965 32834 7 84 BOL 44 22793 48.15028 52150276 62 90 68978 45.17157 50.45402 56.07 784 06.20983 8 134 214 29261 48 08380 52 61289 57 73018 69 85 97.34316 145.95062 58.62667 842 42945 644 66554 84 52098 765 36535 1 66350 51.99 54 03425 59 73395 66.L 1454 62 22730 64 58.21724 54 78298 72 23421 60 4 Table A.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1