On 1 July 2020, Lessor Limited signed a non-cancellable lease with Lessee Limited to lease a land and buildings package. The agreement comprises seven annual lease payments of $75,000 with payments made in arrears (for example, the first payment is made on 30 June 2021). The payment includes $5,000 reimbursement payment to Lessor Limited incurred on repairs and maintenance of the property where such activities are undertaken by Lessor Limited. The buildings are expected to have a remaining useful life of 9 years with no residual value.

Acrobat Reader File Edit View Window Help 390 30 100% [27 Wed 18:00 Q ... EX03367_ACT503_1F_19.pdf Home Tools Slide 1 Lecture 6 - Reval... Corporate Accoun Corporate Accoun EX03367_ACT503... x (? Sign In 10 / 10 100% Additional information is as follows. Export PDF Fair value on 1 July 2020 Unguaranteed value at Create PDF end of the lease term Land $125,000 $40,000 Edit PDF Building $257,788 $100,000 Comment Total $382,788 $140,000 Combine Files Adobe Acrobat Pro DC Required: Combine two or more files a) Prove that the rate of interest implicit in the lease is 12 per cent showing that the fair value of the land into a single PDF and building package on 1 July 2020 equates to the present value of periodic lease payments and unguaranteed residual value 6 Marks Learn more b) Calculate and show the amount of lease payment allocated in the land and building package Organize Pages v 2 Marks i. Land Store and share files in the ii, Building Document Cloud Learn More c) Calculate and show the present value of lease payments of the building 2 Marks OCT 14 CA W X HHH