At the beginning of current year, Lessee Company leased a machinery with the following information:

PROBLEMS Problem 39-1 (IFRS) At the beginning of current year, Lessee Company leased a in machinery with the following information: A Annual rental payable at the end of each year Payment to lessor to obtain a long-term lease 1,000,000 In Cost of dismantling and restoring the asset as required 300,000 Le Le by contract at present value 330,000 Annual executory cost paid by lessee Pu 50,000 Le Lease term Useful life of machinery 4 years Us Implicit interest rate 8 years Im Present value of an ordinary annuity of 1 at 10% for 4 periods 3.17 10% PV Pre The contract of lease provides for neither a transfer of title 1. nor a purchae option. 1. What is the initial lease liability? a. 3,000,000 b. 3,170,000 c. 3,220,090 170 960 d. 4,000,000 2. W 2. What is the cost of right use asset? a. 3,800,000 b. 3,850,000 C. 3,500,000 d. 3,470,000 3. What is the depreciation for the current year? 3. W a. 475,000 b. 950,000 C. 500,000 d. 875,000 4. What is the interest expense for the current year? 4. Wha a. 400,000 b. 300,000 C. 317,000 d. 322,000 786