- Practice Problems Practice Problem 4 (25 minutes) On January 1, 2020, Zulu Co. sells and immediately leases back a building from X-Ray Inc. The building has a net book value of $30,000,000 ($80,000,000 cost-$50,000,000 the fair value. The remaining useful life is 13 years, the lease term is 10 years, and the accumulated depreciation) and a fair value of $50,000,000. The selling price is equal to estimated residual value of the building at the end of the lease term is $10,000,000. This value is not guaranteed. The stipulated fixed payment of $5,297,000 per year, first due on December 31, 2020, represents market rents. The rate implied in the lease is 3.9%, which is the market interest rate for the risk level associated with the lease, and this rate is known by the seller-lessee. At the end of the lease term, X-Ray Inc., the buyer-lessor, has the option of requiring Zulu to repurchase the building for $10,000,000. Required: Prepare all journal entries for 2020 for the seller-lessee (Zulu Co.) and the buyer-lessor (X-ray Inc.) pertaining to the sales-leaseback agreement assuming both follow IFRS. Complete the tasks in the Excel Task file. Appendix II: Excerpts from agreement with Storage-4-U Appendix l: Email from the PPL chief financial officer The following documents are attached: ollows ASPE for reporting purposes. Storage-4-U Inc. for additional warehouse space starting on January 1, 2021. PPL rops between filming contracts. As a result, PPL entered into an agreement with ver the past three years, the company identified a need for additional space to store its opular Props Ltd. (PPL) is a privately owned business that provides costume pieces, et design, and other props to the film industry in Vancouver. Given significant growth (sojnuu oz) uopen