$($P$01)$

A company enters into a lease agreement on January $1,2024,$ for office equipment with a lease term of $5$ years. The annual lease payment is $$10,000,$ and the present value of the lease payments is $$40,000.$ The company classifies the lease as a finance lease.

Calculate the right$-$of$-$use asset and lease liability at the inception of the lease.

Prepare the journal entries to record the lease for the first year, including the lease payment, interest expense, and depreciation.

Discuss the impact of IFRS $16$ on the company$$s financial statements and the importance of proper lease classification.