On 1 July 2021, Whippet Ltd leased equipment from Dane Ltd with a useful life of 6 years. The details of the lease contract are as follows:

Amount	Details
5 years	Duration of lease
$30,000	5 annual payments starting on 30 June 2022
$15,000	Unguaranteed residual value
	The lease can be cancelled by Whippet Ltd at any time as long as Whippet reimburses Dane for losses associated with the cancellation of the lease
6%	The interest rate implicit in the lease.
$137,580	Fair value of the equipment

Dane Ltd classifies the lease as a finance lease in accordance with AASB16 Leases.

Required:

Please fill in the blanks.

The format of your answer to the calculations 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.

Identify which of the following statements about the lease classification is NOT CORRECT by entering the letter of the incorrect statement. Please fill your selected answer (A, B, C or D) in the blank .

A. The present value of the lease payments amounts to substantially all of the fair value of the equipment.

B. The lease is effectively non-cancellable because Dane Ltds losses associated with the cancellation must be borne by Whippet Ltd.

C. The lease term is for the major part of the economic life of the equipment, which is an indicator that the lease has transferred substantially all of the risks and rewards of ownership from Dane Ltd to Whippet Ltd.

D. The present value of the lease payments will include the unguaranteed residual value because Whippet can cancel the contract at any time.

What is the present value of the lease payments is equal to in this lease arrangement? Please fill in your answer in the blank .

What is the opening balance of the lease receivable asset recognised by Dane Ltd on 1 July 2021? Please fill in your answer in the blank .

On 1 July 2021, Whippet Ltd leased equipment from Dane Ltd with a useful life of 6 years. The details of the lease contract are as follows:

Amount	Details
5 years	Duration of lease
$30,000	5 annual payments starting on 30 June 2022
$15,000	Unguaranteed residual value
	The lease can be cancelled by Whippet Ltd at any time as long as Whippet reimburses Dane for losses associated with the cancellation of the lease
6%	The interest rate implicit in the lease.
$137,580	Fair value of the equipment

Dane Ltd classifies the lease as a finance lease in accordance with AASB16 Leases.

Required:

Please fill in the blanks.

The format of your answer to the calculations 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.

Identify which of the following statements about the lease classification is NOT CORRECT by entering the letter of the incorrect statement. Please fill your selected answer (A, B, C or D) in the blank .

A. The present value of the lease payments amounts to substantially all of the fair value of the equipment.

B. The lease is effectively non-cancellable because Dane Ltds losses associated with the cancellation must be borne by Whippet Ltd.

C. The lease term is for the major part of the economic life of the equipment, which is an indicator that the lease has transferred substantially all of the risks and rewards of ownership from Dane Ltd to Whippet Ltd.

D. The present value of the lease payments will include the unguaranteed residual value because Whippet can cancel the contract at any time.

What is the present value of the lease payments is equal to in this lease arrangement? Please fill in your answer in the blank .

What is the opening balance of the lease receivable asset recognised by Dane Ltd on 1 July 2021? Please fill in your answer in the blank .