2. IAS 17 Leases requires a lessee to capitalise a finance lease at which of the following amounts? (A) Fair value of the leased asset (B) Present value of the minimum lease payments (C) Lower of fair value of the leased asset and present value of the minimum lease payments (D) Lower of minimum lease payments and fair value of leased asset 3. Alpha enters into a lease with Omega of an aircraft which had a fair value of $240,000 at the inception of the lease. The terms of the lease require Alpha to pay 10 annual rentals of $36,000 in arrears. Alpha is totally responsible for the maintenance of the aircraft which has a useful life of approximately fifteen years. The present value of the 10 annual rentals of $36,000 discounted at the interest rate implicit in the lease is $220,000. Applying the requirements of IAS 17 Leases to this lease what is the increase in Alpha's non-current assets? (A) Nil (B) $220,000 (C) $240,000 (D) $360,000