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Exercise 20-14 (Part Level Submission) Carla Vista Corporation is a machinery dealer whose shares trades on the TSx, and so uses IFRS 16. Carla Vista

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Exercise 20-14 (Part Level Submission) Carla Vista Corporation is a machinery dealer whose shares trades on the TSx, and so uses IFRS 16. Carla Vista leased a machine to Ernst Ltd, on January 1, 2017. The lease is for a six-year period and requires equal annual payments of $24,826 at the beginning of each year. The first payment is received on January 1, 2017. Carla Vista had purchased the machine for its inventory during 2016 for $99,700. Collectibility of lease payments is reasonably predictable, and no important uncertainties exist about costs that have not yet been incurred by Caria Vista. Carla Vista set the annual rental amount to ensure an 9% rate of return. The machine has an economic ife of six years, with no residual value, and reverts to Caria Vista at the termination of the lease. (a) Your answer has been saved and sent for grading. See Gradebook for score details. Using time value of money tables, a financial calculator, or Excel functions, caleulate the amount of each of the following: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. 1. Gross investment 2. Unearned interest income 3. Net investment in the lease 1489 9256 s 99700 s Attempts: 1 of 1 used Prepare all necessary journal entries for Carla Vista for 2017. (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 O for the amounts. Round answers to 0 decimal places, egs, 275 Date Account Titles and Explanation Debit Credit 148956 Colapse questien part Interest Income Cost of Goods Sold Inventony To record inception of lease & cost of goods sold Attempts: 0 of 1 used SAVE POR LATER SUBMET

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