14 Not yet answered Marked out of 3.00 Flag question Stella Ltd manufactures specialised machinery for both sale and lease. On 1 July 2019, Stella Ltd leased one of these machines to Freddy Ltd, incurring $1,200 in costs to prepare and execute the lease document. Freddy Ltd incurred $640 in costs to negotiate the agreement. The machine being leased cost Stella Ltd $40000 to manufacture. The machine is expected to have an economic life of 6 years, after which time it will have a residual value of $950. The lease agreement details are as follows. * Length of lease: years * Commencement date: 1 July 2019 * Annual lease payment, payable 30 June each year commencing 30 June 2020: $15438 * Residual value at the end of the lease term, fully guaranteed by Freddy Ltd: $8582 * Interest rate implicit in the lease: 6% All insurance and maintenance costs are paid by Stella Ltd and amount to $2384 per year and will be reimbursed by Freddy Ltd by being included in the annual lease payment of $15438. The machinery will be depreciated on a straight-line basis. It is expected that Freddy Ltd will purchase the machine from Stella Ltd at the end of the lease. What was the value of the right-of-use asset at the inception of the lease on 1 July 2019? PLEASE ENTER YOUR ANSWER IN WHOLE NUMBERS WITH NO COMMAS OR DOLLAR SIGNS (EG $1,000,000 SHOULD BE SHOWN AS 1000000; -$1,000,000 SHOULD BE SHOWN AS -1000000)