PLEASE SHOW ALL WORK!!!

PLEASE SHOW ALL WORK!!!

Part 1 The new IFRS 16 was adopted on January 1, 2019. Under this new accounting rule, how are leases being assessed, measured and accounted for? What are the two exceptions to this standard? (6 marks) Part 2 Jets Corporation, a private company using ASPE, wants to lease a $ 500,000 piece of machinery with an estimated economic life of eight years, to Steelers Inc. Jets wants to earn a 9% return on its lease. The machinery will be leased for 7 years, and the annual rental payment will be due at the signing of the lease and on the following six anniversaries of the lease thereafter. The lease does not include a bargain purchase option or residual value at the end of the lease. Instructions a) How would you classify the above-mentioned lease? Please justify your choice in detail. (3 marks) b) Rounding off all figures to the nearest dollar, calculate the annual lease payment Jets Corporation should charge to Steelers Corporation