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Answer the following multiple - choice questions. Indicate your choice by selecting only one option from the four options given for each question answered. Round
Answer the following multiplechoice questions. Indicate your choice by selecting only one option from the four options given for each question answered. Round off all calculations to the nearest Rand or nd decimal where applicable.
QUESTION :
Lessee Ltd leases an office building from Lessor Ltd under a noncancellable lease for a period of years, starting on January
The lease payments are R per month for the first three years and R per month for the final two years. Lessee Ltd has the option to extend the lease term for an additional two years at R per month. At the commencement of the lease, Lessee Ltd is reasonably certain that it will exercise the option to extend the lease for the further two years.
Additionally, of each lease payment goes towards covering maintenance costs, which are to be paid by Lessee Ltd These values are in line with the costs for similar maintenance services provided by third parties.
Lessee Ltd has elected to apply the recognition exemption for lowvalue assets in accordance with IFRS Lessee Ltd also accounts for the lease and nonlease components separately, in accordance with IFRS
REQUIRED:
Calculate the prepayment portion of the lease on December
R;
R
R;
R;
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