Potter company signed a lease contract at the end of 2020 in which the contract gives potter the right to use a leased piece of equipment for 5 years from Siryous company. The leased asset has a fair value of 17,000 with, useful life 6 years and salvage value of 5,000 (guaranteed). It is expected that the asset will have a residual value at the end of the lease term more than 5,000. The lease contract is effective from 1.1.2021 giving rise to annual payments at the beginning of each year for 5 years total of $2,877.80 annually. Assume that the implicit rate on this contract is 5% which is known to lessee and the incremental borrowing rate is 10%. Use the following extracted data from PV tables: Single sum 3 Years 4 years 5 years 6 years 4% 0.88900 0.85480 0.82193 0.79031 5% 0.86384 0.82270 0.78353 0.74622 6% 0.83962 0.79209 0.74726 0.70496 8% 0.79383 0.73503 0.68058 0.63017 10% 0.75132 0.68301 0.62092 0.56447 12% 0.71178 0.63552 0.56743 0.50663 Annuity due 3 Years 4 years 5 years 6 years 4% 2.88609 3.77509 4.62990 5.45182 5% 2.85941 3.72325 4.54595 5.32948 6% 2.83339 3.67301 4.46511 5.21236 8% 2.78326 3.57710 4.31213 4.99271 10% 2.73554 3.48685 4.16986 4.79079 12% 2.69005 3.40183 4.03735 4.60478 Annuity ordinary 3 Years 4 years 5 years 6 years 4% 2.77509 3.62990 4.45182 5.24214 5%2.72325 3.54595 4.32948 5.07569 6% 2.67301 3.46511 4.21236 4.91732 8% 2.57710 3.31213 3.99271 4.62288 10% 2.48685 3.16986 3.79079 4.35526 12% 2.40183 3.03735 3.60478 4.11141 Question 3 Vot yet answered Marked out of 1.00 P Flag question What is the value of the right of use asset to be recognized at commencement date Answer: What is the value of lease liability to be recognized at commencement date Answer: 2 Question 5 Not yet answered Marked out of 6.00 P Flag question Record the required journal entries for 2021 Show the financial statement presentation at the end of 2021 7 A B I iii % ? What is the value of lease liability at 1.1.2025 Answer: 2 What is the value of right of use asset at 1.1.2025 L