At the beginning of the current year, Panorama Company leased a building from a lessor with the following partinent information:

Problem 39-2 (IFRS) Leased a At the beginning of current year, Panorama Company leased a building from a lessor with the following pertinent information: 300,000 Annual rental payable at the end of each year Initial direct cost paid 1,000,000 Lease incentive received 400,000 330,000 Leasehold improvement 100,000 50,000 Purchase option that is reasonably certain to be exercised 200,000 4 years Lease term . 500,000 8 years Useful life of building 5 years 10% Implicit interest rate 8 years 10% ds 3.17 PV of an ordinary annuity of 1 for 5 periods at 10% 3,79 Present value of 1 for 5 periods at 10% 0.62 r of title 1. What is the cost of the right of use asset? a. 4,500,000 b. 4,400,000 2 10 900 1000 C. 4,700,000 d. 4,600,000 2. What is the depreciation for the current year? a. 880,000 b. 900,000 C. 550,000 3,809 20 d. 575,000 3. What is the interest expense for the current year? a. 410,000 b. 379,000 S C. 450,000 d. 429,000 4. What is the lease liability at year-end? a. 3,510,000 ear? b. 3, 169,000 c. 3,950,000 d. 3,719,000