At the beginning of current year, Arianne Company sold machine and immediately leased it back. Sale price at fair value Carrying amount of machine Annual rental payable at the end of each year Lease term Remaining Implicit interest rate life of machine PV of an ordinary annuity of 1 at 6% for 5 periods 1. What is the cost of right of use asset? a. 2,105,000 b. 2,526,000 c. 2,895,000 d. 1,500,000 2. What is the loss on right transferred to the buyer-lessor? a. 579,000 b. 505,200 c. 500,000 d. 0 3. What is the lease liability at year-end? a. 2,177,560 b. 1,605,000 c. 1,731,300 d. 2,105,000 5.000.000 6,000,000 500,000 5 years 20 years 421