Pharoah Leasing Corporation, which uses IFRS, signs a lease agreement on January 1, 2023, to lease...

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Pharoah Leasing Corporation, which uses IFRS, signs a lease agreement on January 1, 2023, to lease electronic equipment to Wai Corporation, which also uses IFRS. The term of the non- cancellable lease is two years and payments are required at the end of each year. The following information relates to this agreement. 1. Wai has the option to purchase the equipment for $12,600 on the termination of the lease, and this option is reasonably certain to be exercised. 2. The equipment has a cost and fair value of $145,000 to Pharoah Leasing. The useful economic life is two years, with a residual value of $12,600. 3. Wai is required to pay $6,000 each year to the lessor for insurance costs. 4. Pharoah Leasing wants to earn a return of 8% on its investment. 5. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs that have not yet been incurred by the lessor. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (Collection of lease payment.) (To record interest.) (Collection of lease payment.) (To record interest.) Pharoah Leasing Corporation, which uses IFRS, signs a lease agreement on January 1, 2023, to lease electronic equipment to Wai Corporation, which also uses IFRS. The term of the non- cancellable lease is two years and payments are required at the end of each year. The following information relates to this agreement. 1. Wai has the option to purchase the equipment for $12,600 on the termination of the lease, and this option is reasonably certain to be exercised. 2. The equipment has a cost and fair value of $145,000 to Pharoah Leasing. The useful economic life is two years, with a residual value of $12,600. 3. Wai is required to pay $6,000 each year to the lessor for insurance costs. 4. Pharoah Leasing wants to earn a return of 8% on its investment. 5. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs that have not yet been incurred by the lessor. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (Collection of lease payment.) (To record interest.) (Collection of lease payment.) (To record interest.)