Question
On 1 July 2021 Anemone Ltd leased equipment from Daffodil Ltd with a useful life of 9 years. The details of the lease contract are
On 1 July 2021 Anemone Ltd leased equipment from Daffodil Ltd with a useful life of 9 years. The details of the lease contract are as follows:
Amount | Details |
6 years | Duration of lease |
$50,000 | 6 annual payments starting on 30 June 2022 |
$15,000 | Exercise price of a reasonably certain purchase option |
4% | Incremental borrowing rate for Anemone. It is not possible to determine the interest rate implicit in the lease |
Required:
Please fill in the blanks.
The format of your answer MUST be as follows: $1,000,000.
Any present value calculations MUST be done using the present value Tables 1 and 2 from the Issues textbook. (Scanned copies are available on Blackboard in learning resources for weeks 3 and 4). Round to whole numbers.
What is the value of the lease payments calculated in accordance with AASB16 Leases? Please fill in your answer to the blank .
What is the reduction in lease liability recognised by Anemone at 30 June 2022? Please fill in your answer to the blank .
What is the amount of depreciation expense for the Right-of-use asset recognised by Anemone at 30 June 2022? Please fill in your answer to the blank .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started