Cullumber Leasing Corporation, which uses IFRS 16, signs a lease agreement on January 1, 2020, to lease electronic equipment to Wai Corporation, which also uses IFRS 16. The term of the non-cancellable lease is two years and payments are required at the end of each year. The following information relates to this agreement.

1.Wai Corporation has the option to purchase the equipment for $11,200 upon the termination of the lease and this option is reasonably certain to be exercised.

2.The equipment has a cost and fair value of $150,000 to Cullumber Leasing Corporation. The useful economic life is two years, with a residual value of $11,200.

3.Wai Corporation is required to pay $5,800 each year to the lessor for insurance costs.

4.Cullumber Leasing Corporation wants to earn a return of 9% on its investment.

5.Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs that have not yet been incurred by the lessor.

Using time value of money tables, a nancial calculator, or Excel functions, calculate the lease payment that Cullumber Leasing would require from Wai Corporation. (Hint: You may nd the ROUND formula helpful for rounding in Excel.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 52.75.) Lease payments $ Prepare a lease amortization schedule for Cullumber Leasing for the term of the lease. (Round answers to 0 decimal places, e.g. 52,754.) CULLUMBER LEASING CORPORATION (Lessor) Lease Amortization Schedule Annual Payment Interest Net Excluding on Net Investment Net Date Executory Costs Investment Recovery Investment 1/1/20 $ 1 2/3 1/ 20 $ $ $ 12/3 1/2 1 $ Prepare the journal entries on Cullumber Leasing's books to reect the payments received under the lease and to recognize income for the years 2020 and 2021. (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. Round factor values to 5 decimal places, e.g. 1.25124 and nal answers to a decimal places, e.g. 52,754.) Date Amount 1165 and animation Dehlt Credlt v (To record inception of lease.) Prepare the journal entries on Cullumber Leasing's books to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (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. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 52,754.) Date Account Titles and Explanation Debit Credit (To record inception of lease.) v (Collection of lease payment.) v (To record interest.) v (Collection of lease payment.) v (To record interest. )Assuming that Wai Corporation exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to reect the sale on Cullumber Leasing's books. (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 amouns. Round answers to 0 decimal places, e.g. 52,754.) Date Amount 11!- and Explanation Debit Credit 12/31/21 What amount would Wai Corporation capitalize and recognize as a lease liability and corresponding right-to-use asset on signing the lease? (Round answer to a decimal places, e.g. 52,257.) Amount $