Current Attempt in Progress The following facts are for a non-cancellable lease agreement between Blossom Corporation and Russell Corporation, a lessee Inception date July 1, 2020 $ 20,194.64 $ 3,700.00 Annual lease payment due at the beginning of each year, starting July 1, 2020 Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell Lease term Economic life of leased equipment 5 years 10 years $ 48,800.00 $ 89,600.00 Lessor's cost Fair value of asset at July 1, 2020 Lessor's implicit rate Lessee's incremental borrowing rate 8% 896 The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Blossom use IFRS 16 Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Calculate the amount of the right-of-use asset and lease liability. (Round factor values to 5 decimal places, eg. 1.25124 and final answers to 2 decimal places, e.g. 52.75) Amount $ | Maha Par PANOT htaraai - pulieties - Orgale MUM 120 PM MANI 70 Toto Media Prepare the journal entries on the lessee's books to reflect the signing of the case agreement and to record the payments and expenses related to this case for the years 2020 and 2021. Husses mal accounting period ends on December 31. del does not streversing entries. (Credit account titles are automatically Indented when the amount is entered Do not indent merely Round aniwers to 2 decimal places, 5275) Date Account Titles and Explanation Debit Credit 7/1/20 (o record inception and payment of fease 12/31/20 (o record interest 12/31/20 To record depreciation expert Question 4 of 5 -21 12/01/20 To record depreciation expense) 7/1/2021 To record lease payment 12/30/2021 To record interest 12/31/2021 to record depreciation expense