On January 1, 2019 "Jordan Co." and "North Co."sign a lease agreement, that calls for "Jordan Co." to lease a Machine to "North Co."for 5 years for $ 40000paidat the end of each year .

-Estimated economic life for the machine is 5 years,

-a guaranteed residual value of $ 15,000 . North Co. expects that it is probable that the expected value of the residual value at the end of the lease will be $ 5,000 The machine reverts to Jordan co.at the termination of the lease.

-Depreciation used (straight-line method).

-implicit interest rate is 8%.

* Present value of$1 for 5 periods at 8%=.680

* Present value of annuity for 5 periods at 8%=3.99

Answerthe followingquestions in accordance with IFRS16in Lessee records(North Co.):

1. The debit side in the journal entry recorded on January 1, 2019 shall include:

a.Right-of-Use Asset of $ 166400 .

b.Right-of-Use Asset of $ 159600

c. Right-of-Use Asset of $ 169800.

d. Lease Liability of$ 209700 .

2. The credit side in the journal entry to record interest at Dec. 31, 2019 is:

a. Lease Liability of $ 13312

b. Interest Expense of $ 16504

c. Interest Expense of $ 13548

d. Lease Liability of $ 12768

3. TheCreditside in the journal entry to record depreciation for the lease at Dec. 31, 2019 is:

a. Right-of-Use Asset of $ 31920

b. Right-of-Use Assetof $ 41260

c. Right-of-Use Asset of $ 33280

d.Depreciation Expense of $ 41260.

4. The carrying amount of " Lease Liability " on statement of financial position at Dec. 31, 2020 is:

a. $ 136628.32

b.$ 110888.96

c.$ 102957.44

d. $ 123780