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Crane Corp., which uses IFRS, signs non - renewable, non - cancellable lease agreement to lease robotic equipment from Cullumber Inc. The following information concerns
Crane Corp., which uses IFRS, signs nonrenewable, noncancellable 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.
Economic life of leased equipment
Annual rental payments starting Jan.
Option to purchase at the end of the term
Depreciation method
Residual value
Crane's incremental borrowing rate
January
years
$
years
$
none
Straightline
none
Using factor tables, a financial calculator, or Excel functions, calculate the amount of the rightofuse asset and lease liability. Round factor values to decimal places, eg and final answers to decimal places, eg
The amount of the rightofuse asset
$
Prepare the initial entry to reflect the signing of the lease agreement.
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