At the beginning of current year, an entity soldan equipmentwith remaining life of 10 years and immediately leased it back for 4 years at the prevailing market rental.

Sale price atfair value6,000,000

Carrying amount of equipment4,500,000

Annual rental payable at the end of each year800,000

Implicit interest rate10%

Present value of an ordinary annuity of 1 at 10% for four periods3.17

Q1. What is the initial lease liability?

Q2. What is the cost of right of use asset?

Q3. What is the gain on right transferred?

Q4. What is the annual depreciation of the right use asset?