Monterrey Properties enters into a 4-year lease for an automobile to be used in operation. The agreement obligates the company to make lease payments of $10,000 at the end of every year. Its useful economic life would be 8 years. Assume that the companys borrowing rate is 6%. The PV factor for 4 period, 6%, ordinary annuity is 3.4651.

How much are the lease liability and leasehold asset under IFRS?

	A.	Lease liability: $30,000; Leasehold asset: $34,651.
	B.	Lease liability: $34,651; Leasehold asset: $30,000.
	C.	Lease liability: $34,651; Leasehold asset: $34,651.
	D.	Lease liability: $30,000; Leasehold asset: $30,000.