On December 31, 2020, Oxtongue Inc. leased machinery with a fair value of $420,000 from Algonquin Rentals. The agreement is a six-year non-cancellable lease requiring annual payments of $80,000 beginning December 31, 2020. The lease is appropriately accounted for by Oxtongue as a finance lease. Oxtongue's incremental borrowing rate is 11%; however, they also know that the interest rate implicit in the lease payments is 10%. Oxtongue adheres to IFRS.

The present value of an annuity due for 6 years at 10% is 4.7908.

The present value of an annuity due for 6 years at 11% is 4.6959.

On its December 31, 2020 statement of financial position, Oxtongue should report a lease liability of (rounded to the nearest dollar)

Select one:

a. $340,000

b. $383,264

c. $375,672

d. $303,264

Icon Corp. was organized on January 1, 2020, with 300,000 no par value common shares authorized. During 2020, the corporation had the following share transactions:

Jan4Issued 120,000 shares at $ 10 per share

Mar8Issued 40,000 shares at $ 11 per share

May17Purchased 15,000 shares at $ 12 per share and cancelledthem

Jul6Issued 30,000 shares at $ 13 per share

Aug27Issued 10,000 shares at $ 14 per share

The total amount in the Common Shares account at December 31, 2020 is

Select one:

a. $ 2,170,000.

b. $ 2,007,250.

c. $ 1,990,000.

d. $ 2,016,250.