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Problem 10-30 please answer all 1.000.000 350,000 150.000 100,000 200,000 300,000 5 years 8 years 8% 4.31 0.68 Problem 10-30 (IFRS) At the beginning of
Problem 10-30 please answer all
1.000.000 350,000 150.000 100,000 200,000 300,000 5 years 8 years 8% 4.31 0.68 Problem 10-30 (IFRS) At the beginning of current year, Southstar Company leaned a building with the following information: Annual fixed payment in advance at the beginning of each lease year Initial direct cost paid Lease incentive received Lease bonus paid to lessor before commencement of lease Present value of cost of restoring the building as required by contract discounted at 6% Purchase option that is not reasonably certain to be exercised Lease term Useful life of building Implicit interest rate Present value of an annuity of 1 in advance at 8% for 5 periods Present value of 1 at 8% for 5 periods 1. What is the initial lease liability? a. 4,514,000 b. 4,310,000 c. 4,614,000 d. 4,764,000 2. What is the cost of right of use asset? a. 4,814,000 b. 4,810,000 c. 4,710,000 d. 4,610,000 3. What is the annual depreciation? a, 912,800 b. 588,750 c. 962,000 d. 601,250 4. What total amount should be reported as interest expense for the current year? a. 344,800 b. 205,984 c. 264.800 d. 276,800 376 Step by Step Solution
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