FloridaSunLtdhasenteredintoaleasearrangementtoacquiretherighttouseanitemofequipment.Thetermsoftheleaseareasfollows: Theleaseisnon-cancellable.FloridaSunLtdisresponsibleformaintainingandinsuringtheequipment.FloridaSunLtdreturnstheequipmenttothelessorattheendoftheFiveyearleaseperiod.Theeconomiclifeoftheequipmentissixyearsatwhichtimeitwillhavenoscrapvalue.FloridaSunLtdhasafinancialyearending30June. Inception of the lease and the beginning of the lease term 30 June 2022 Termination date of the lease 30 June 2027 Period of the lease 5 years Guaranteed residual value at end of the lease term $2 715 Interest rate implicit in the lease 15% Lease rental amount payable annually in advance $30 000 Fair value of leased asset $125 000