an Question 3: On July 15 20X0 Wisdom Pvt. Ltd. entered into a contract of lease for a new car with a commercial bank for three years. Cash price of the vehicle was Rs. 3,417,000 but the contract required a security deposit of Rs. 383,400 and a processing fee of Rs. 2,500 (and that comprise total upfront payment of 385,900). Annual year-end lease rentals for three years would be Rs. 688,284. Wisdom's incremental borrowing rate is 9.1%. The useful life of vehicle is 7 years. Required: 1. Calculate the values of lease liability and right-of-use asset for the Wisdom and pass the journal entries to record the effects. (10) (10) 2. Provide the extracts from the statements of financial position and the statements of comprehensive income for the years ending June 30 20X1 and June 30 20X2 in respect of the lease contract. an Question 3: On July 15 20X0 Wisdom Pvt. Ltd. entered into a contract of lease for a new car with a commercial bank for three years. Cash price of the vehicle was Rs. 3,417,000 but the contract required a security deposit of Rs. 383,400 and a processing fee of Rs. 2,500 (and that comprise total upfront payment of 385,900). Annual year-end lease rentals for three years would be Rs. 688,284. Wisdom's incremental borrowing rate is 9.1%. The useful life of vehicle is 7 years. Required: 1. Calculate the values of lease liability and right-of-use asset for the Wisdom and pass the journal entries to record the effects. (10) (10) 2. Provide the extracts from the statements of financial position and the statements of comprehensive income for the years ending June 30 20X1 and June 30 20X2 in respect of the lease contract