1. On 1 July 2020 Freesia Ltd (lessee) entered into a contract with Gladiolus Ltd (lessor) to lease an item of plant for five years. The asset has a useful life of 7 years. The terms of the lease contract are as follows:

   • Five annual payments of $50,000 commencing on 30 June 2021.
   • Guaranteed residual value of $15,000. Freesia Ltds policy is to pay any guaranteed residual value at the end of a lease to gain legal ownership of the leased asset.
   • A termination payment of $10,000 is due should Freesia Ltd cancel the lease. Freesia Ltd has no history of lease terminations.
   • The interest rate implicit in the lease is 3%.

   Required:

   What is the present value of lease payments calculated in accordance with AASB16 Leases? Please fill in the blank $_______________.

   What is the amount of interest expense recognised by Freesia at 30 June 2022? Please fill in the blank $ ______________________

   What is the amount of depreciation expense for the Right-of-use asset recognised by Freesia at 30 June 2021? Please fill in the blank $ ______________________