$3$Air Berhad enters into an agreement with Bowing Ltd for lease of an aircraft, with

an option to extend for five years. The details of the lease agreement are as

following:

Commencement Date January $1,2023$

Lease Term $10$ years

Lease Payment $($paid in arrears$)$ RM$100,000$ annually

Lessee$$s Incremental Borrowing

Rate

$6\%$

Useful Life of Underlying Asset $25$ years

The present value of each lease payment is given as below:

Period Present value of lease

payment

$($RM$)$

$194,339\mathrm{.}62$

$288,999\mathrm{.}64$

$383,961\mathrm{.}93$

$479,209\mathrm{.}37$

$574,725\mathrm{.}82$

$670,496\mathrm{.}05$

$766,505\mathrm{.}71$

$862,741\mathrm{.}24$

$959,189\mathrm{.}85$

$1055,839\mathrm{.}48$

Total $736,008\mathrm{.}71$

In accordance to Paragraph $26$ of MFRS $16,$ Leases, prepare the amortisation

schedule for $3$Air. You may use the following format:

Period Payment Interest

expenses

Liability

reduction

Liability Depreciati

on

expenses

Net Asset

Balance

Depreciation

Beginning

$1$