Crane Corp., which uses IFRS, signs non$-$renewable, non$-$cancellable lease agreement to lease robotic equipment from Cullumber Inc. The following information concerns the lease agreement.

Inception date

Lease term

Fair value of equipment Jan. $1,2023$

Economic life of leased equipment

Annual rental payments starting Jan. $1,2023$

Option to purchase at the end of the term

Depreciation method

Residual value

Crane's incremental borrowing rate

January $1,2023$

$5$ years

$$110,000$

$7$ years

$$18,723$

none

Straight$-$line

none

$6\%$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

Using $(1)$ factor tables, $(2)$ a financial calculator, or $(3)$ Excel functions, calculate the amount of the right$-$of$-$use asset and lease liability $($Round factor values to $5$ decimal places, eg$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.)$

The amount of the right$-$of$-$use asset $

$$

Prepare the initial entry to reflect the signing of the lease agreement. $($Round answers to $0$ decimal places, es$.5,125.$ List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1,$

$2023$

$$

Prepare an amortization schedule for the term of the lease to be used by Crane. $($Round answers to $0$ decimal places, eg$.5,275.$

$$

Prepare the journal entries on Crane Corp.$\text{'}$s books to record the payments related to this lease for the years $2023$ and $2024$ as well as any adjusting journal entries at its fiscal year ends of December $31,2023$ and $2024.($Round answers to $0$ decimal places, eg$.5,125.$ List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credil

$($To record depreciation$)$

$($To record interest$)$

$($To record depreciation$)$

$($To record interest$)$