On 1st January 2015, Trademart SAOG entered into an agreement to lease an item of plant from a manufacturer for 5 years. The lease requires five annual payments of RO 200,000 each commencing from 1st January 2016. The plant would have a useful life of five years and with no residual value. The present value of the total lease payments is OMR 840,000. The cost of capital used is 12% find the initial amount of lease liability right to use asset recognition in the first year in the books of lessee. . Lease liability OMR 640,000 and right to use asset OMR 640,000 None of them Lease liability OMR 840,000 and right to use asset OMR 840,000 Lease liability OMR 640,000 and right to use asset OMR 840,000 Dolo LLC provides following information. Consider the following information about a newly purchased Property plant and equipment Purchase price of the equipment is OMR750,000 and the residual value of the equipment is OMR. 50,000. The useful life of the equipment is 10 years with a total production capacity of 5 million units. the depreciation rate applicable for the equipment under straight line method is 15%. The production details by using the equipment are given below: Production during the year 1 and 2 = 50,000 units each year Production during the year 3 and 4 = 150,000 units each year Production during the year 5 and 6 = 125000 units each year What is the accumulated depreciation at the end of 5 years based on production units' method? None of them OMR 70,000 OMR 73,500 OMR 350,000 Which of the following situation can be related to accrual concept while presentation of financial reports? 1. Depreciation charged on property plant and equipment under straight line method at 12% and presented in the income statement. II. Provision for warranty claims presented in the financial statements, III. Dividend received from investments made in other company equity shares presented as per IAS 7. IV. Prepaid expenses paid and made necessary adjustment in the books of accounts. I and II only I, II and IV only I, II, III and IV only III and IV only