84334/take At 1 Jan 2021, Ayden Ltd entered into an arrangement to lease a machine from Ricky Ltd. The agreement contained the following terms: Lease term 5 years Annual payment, payable in advance on 1 Jan each year $21,000 with the first lease payment required 1 Jan 2021 Economic life of the machine The guaranteed residual value, due under this lease arrangement on 1 Jan 2026, that has been 100% guaranteed by Ayden Ltd Interest rate implicit in the lease 8 years $10,000 4% Ownership of the machine will pass to Ayden Ltd at the Yes end of the lease term Lease agreement legal costs $2,110 Ayden Ltd has classified the arrangement as a lease under AASB 16: Leases and has adopted a 31 Dec year-end balance date. Under AASB 16, Ayden Ltd measures the right-of-use asset applying the cost model and under AASB 116; Property, Plant and Equipment, has made the estimate that the residual value of the right-of-use asset for depreciation purposes is zero. Ayden Ltd uses the following present value tables to calculate amounts rounded to the nearest whole dollar. Present Value of $1 periods (n) Rate of interest % 2% 3% 4% 4 0.924 0.888 0.855 5 0.906 0.863 0.822 6 0.888 0.837 0.790 7 0.871 0.813 0.760 autoproctoru.com is sharing your screen. Stop sharing Hide Present Value of Annuity in Arrear v Present Value of Annuity in Arrears of $1 Periods (n) Rate of interest % 2% 3% 4% 3.808 3.717 3.630 5 4.713 4.580 4.452 6 5.601 5.417 5.242 7 6.472 6.230 6.002 Required: Show all workings. Calculate the: (a) initial lease liability and right-of-use asset amounts Ayden Ltd would recognise for the machine lease at 1 Jan 2021 (5 marks); and (b) carrying amount of right-of-use asset at 31 Dec 2021 (4 marks). Edit View Insert Format Tools Table 12pt Paragraph BIUART >