guarantees the lessor a residual value of $$8,000$ at lease end. The equipment has a useful life of seven years.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE OF $1.$

$($b$)$

Assume instead that Crane follows IFRS and that the amount expected to be paid under the residual value guarantee is $$10,000.$ Calculate the amount of the right$-$of$-$use asset and prepare Crane's September $2023$ journal entry, assuming an interest rate of $11\%.($List all debit entries before credit entries. 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$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.)$

Account Titles and Explanation

Debit

Credit

$($To record inception of lease and first lease payment.$)$