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Please solve this asap, Morris enters into an agreement to lease an asset on January 1, 2019. The term is for four years with lease
Please solve this asap,
Morris enters into an agreement to lease an asset on January 1, 2019. The term is for four years with lease rentals of $2,000 payable on December 31 each year. The Present value of the lease payments is $5,710. The interest rate implicit in the lease is 15%. The Fair value of the leased asset at the time of the agreement is $5,800. 10. The amount of interest expense in the first rental payment is? a. $2,000 b. NIL C. 857 d. 5,710 11. The closing lease liability as at December 31, 2019 is? a. $3,710 b. 4,567 C. 3,252 d. None of the above 12. The amount of non-current and current lease liability to be presented in the balance sheet as at December 31, 2019 will be? a. $3,252 and $1,315 b. $3,252 and $0 C. $4,567 and $1,143 d. $3,252 and $857Step by Step Solution
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