Question
Ivanhoe Ltd. entered into a lease on June 1, 2023. The lease term is six years and requires annual rental payments of $27,000 at the
Ivanhoe Ltd. entered into a lease on June 1, 2023. The lease term is six years and requires annual rental payments of $27,000 at the beginning of each year. Ivanhoes incremental borrowing rate is 5% and the rate implicit in the lease is 9%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.
(a)
Calculate the capitalized amount of the right-of-use asset if Ivanhoe follows IFRS. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 5,275.75.)
Leased asset | $enter the leased asset in dollars rounded to 2 decimal places |
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