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On January 1, 2021, Letty Company leased a machine with the following provisions: Annual lease payment in advance at the beginning of the year Lease
On January 1, 2021, Letty Company leased a machine with the following provisions: Annual lease payment in advance at the beginning of the year Lease term Useful life of the machine Implicit interest rate in the lease PV of an ordinary annuity of 1 at 12% for 10 periods PV of an annuity of 1 in advance at 12% for 10 periods PV of 1 at 12% for 10 periods 1,000,000 10 years 15 years 12% 5.650 6.328 0.322 The ownership transfers to the lessee at the end of the lease term. Complete the table below. Jan 1, 2021 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 FINANCIAL POSITION Right of use asset Less: Accumulated depreciation Net book value Lease liability COMPREHENSIVE INCOME Interest expense Depreciation
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