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Question 4 On 31 December 2019, Tiger Limited signs a 5-year, non-cancelable lease agreement to lease a warehouse from Maria Logistic Company. The following information

Question 4 On 31 December 2019, Tiger Limited signs a 5-year, non-cancelable lease agreement to lease a warehouse from Maria Logistic Company. The following information related to the lease agreement is: The agreement requires fixed annual rental payments of $25.000 beginning on 31 December 2019 The fair value of the warehouse on 31 December 2019 is $110,000 (2) (3) The warehouse has an estimated economic useful life of 6 years, a guaranteed residual value of $12,000 and an expected residual value of $9,000. Tiger adopts straight-line method for depreciation The lease is non-renewable. At the termination of the lease, the building will be returned to Maria Logistic Company. (4) (5) The incremental borrowing rate is 8% per annum for Tiger Limited. The implicit rate for Maria Logistic Company is not known by Tiger Limited. The fiscal year-end for Tiger Limited is 31 December (7) Required: (Answers should be rounded to the nearest dollar) Compute the present value of the minimum lease payments (using the interest tables given in Appendix) (3 marks) (b) Prepare the journal entries on the lessee's book to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years of 2019 and 2020. (10 marks) (c) Suppose, at the end of lease term, Tiger has taken good care of the asset and the fair value of the asset is estimated to be $11,000. Record the entry for Tiger at the end of the lease to return the warehouse to Maria (assuming the accrual of interest on the lease liability has already been made). (2 marks) Compound Interest Table (Present Value of 1 Due in N periods) Number of Years 166 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Interest Rate 3 49 SS 6 70 8 109 114 1264 134 0.99010 098019 0.97057 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.0209 0.90000 0.896 081496 0.9NOVO 0.96117 0.94260 092456 0.90703 0.8 0.87144 0.85734 0.84168 0.62645 0.81162 0.79719 0.78315 0.97059 094232 0.91514 088900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.69305 099 0.92185 O.XXX49 ONSENO 0.82270 0.79209 0.76290 0.71503 0.70643 0.68.301 0.65873 0.63552 0.61332 0.95147 0.90573 0.86261 0.82193 0.78153 0.74726 0.71299 0.6NOSN 064993 0.62092 0.59145 0.56743 0.54276 0.94205 0.88797 0.21748 0.79031 0.74622 0.70496 0.66614 061017 0.5627 0.56447 05164 0.5063 0.48032 091272 0.87056 0.81300 0.75992 0.71068 0.66516 0.62275 0.56349 054703 0.51316 0.48166 0.45235 0.42506 0.92148 O.RS449 0.78941 0.73069 0.67684 0.62741 0.58201 O S4027 0.50187 0.46651 0433930,40388 091414 0.37616 0.8.1676 0.76642 0.70259 0.64.461 0.59190 OS4193 050025 0.46043 042410 0.39092 0.0061 0.33288 0.2529 0.83015 0.74400 067556 0.61391 0.558.19 O.SORIS 0.46319 0.42241 0.38554 0.35218 0.32197 0.29499 0.89612 0.0426 0.72242 064958 O.SKAN 0.5269 0.47509 0.42888 0.887530,15049 0.31728 0.28748 0.26070 0.88745 0.78819 0.701.38 062460 0.55684 0.49697 0.44401 0.19711 0.15553 0.3166 0.28584 0.25665 0.23071 0.87866 0.77303 0.68095 0.60057 0.53032 0.46884 0.414% 0.36770 0.32618 0.28% 0.25751 0.22917 0.20416 086096 0.75788 0.66112 0.57745 0.S0507 0.44230 018782 0.14046 0.29925 0.26333 0.23199 0.20462 0.18068 0.86115 0.74101 0.64186 0.55826 0.48102 0.41727 0.16345 0.31534 0.27454 0.21939 0.2000 0.18270 0.1999 0.85282 0.72845 0.62317 0.53191 0.45811 0.3918 0.33873 0.29189 0.25187 0,21763 0.18829 0.16312 0.14150 0.84438 0.71416 0,60502 051337 0.416.10 0.371M 0.31657 0.27027 0.23107 0.19784 0.1666) 0.14564 0.12522 0.8102 0.70016 0.58739 0.49163 0.41552 0.35044 0.29586 0.25035 0.21199 0.17986 0.152820.1.2004 0.110NI 0.82774 0.68643 0.57029 0.47464 0.39573 03.SI 0.27651 0.23171 0.19449 0.16.151 0.13768 0.11611 0.096 0.81954 0.67297 0.55368 045639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10467 0.08678 0.81143 0.65978 0.53755 0.43883 0.35894 0.29416 0.24151 0.198.66 0.16370013513 0.11174 0.09256 0.07680 0.803.10 0.61684 0.52189 042196 0.14185 0.27751 0.22571 0.16194 0.150IX 0.12285 01067 0.01264 005706 0.79544 0.63416 O.SK 0.40573 0.32557 0.261 NO 0.21095 0.12032 0.13778 0.11168 0.02069 0.07379 0.00014 0.78757 0.62172 0.49193 0.39012 0.31007 0.24698 0.19715 0.15770 0.12640 0.10153 Q.ONI 70 0.06588 0.05323 0.77977 0.609530.47761 037512 0.29530 0.233000.18425 0.14602 0.11597 0.09230 0.07361 0,05882 0.04710 0.77205 0.59758 0.46.149 0.36069 0.28124 0.21981 0.17220 0.13520 0.10639 0.0191 0.06631 0.05252 0.04168 0.76440 0.58586 0.45019 034682 0.26785 0.20737 0.16093 0.12519 0.09761 0.07628 0.05974 0.04689 0.03689 0.75684 0.57437 041708 011448 0.25509 0.1956 015040 0.11591 0.01955 0.06934 0.05182 0.04187 0.03264 0.74934 0.56311 0.42415 0.32065 0.24295 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.02889 0.74192 0.55207 0.41199 0.308.12 0.23138 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.02557 16 17 18 19 20 21 22 23 24 | 26 27 2x 29 30 (II) Present Value of an Annuity Due of $1 PVADAS NON IN WSZ Not ws 4.0% 45 6.04 7.4 10.08 110 120 200 100000 1.000 1.00000 100000 100000 100000 100000 100000 10000 100000 100000 100000 10000 10000 10000000000000000000 2.1.2010 1922 1980 1971 1970 196154 1560 1530 1771.040 1.93581.3 117 11 12 13 3 27000 2.952941542.92742 20137 2200 200 207267 261 204 2003 20000 2326 2.76011 274 271252 2.0 2.52778 +3.409 101220388 382321 2014 3.750 3.00 3.2125 3001873 342 35721035312244312013 2011 5400109 410 411197 4717107 447530 OSS 721 311 2072 2073 SO 571264571348552971.150 5451825.32852708521236 10020 N 007 9001 747106016001341710204214615717302 08 1114121 7.72019 7021 74719 730 7.23028 711054 700205220 67 64120452262962043603205 SMD 1220 TL 8A516 438.32546 &170148197 912 7.50 74821 735 7.2007069713065412 603 650012513316 10 M2 1227 MIN 4339100225220 7.1 7.123 762 61 625 6.25 11 10.47130 10 22218 000 0.75206 911 0110000127272133 M00200771000 717 7.1723 602 1947 12 113 1107112 10 10,5121 10:25 1000155 0 2021 24 700 000 13 12 11 10251 11.57534112576 10 95400 100 1007 10.11658 12 04 20 710 7112367.107. 14 13.13374 12.73153 12.037 11987101143496 1104 105 10.2008 109 110 10 10 10 AM 15 14.00370 13.50 1100 12.00 12.00 11.92052 11 4112 113 10.0 10.00 100.000479615 TAMT41057 16 14 S 14342313026 13:30138 12.93704 12.51241 12.118 1175 113 1108 1071225 10101 019 7810 56147 17 15.71787 15.13124145777 105000 1156110 1100412 124821274021123777 1016 11.10500 10 127 1123687 167870572954 10 16.00 1520745 15.20107 1071220 14 1412 12.05132 1316567 12.70710 12.27807 114 11.6776 107322 10.2144 0.50 9.00105 542 81193 57753 19 12 22 166728615203 125336 1435 141 14500 1500 12.4 12240112700 11000 11 2565 9201410120721210 20 18.22601 1742417 16.47946 19 15:20 1470 143. 13.00 12.00 121512 12010001011 MAR 2018 21 19.04555 1604 17.10 16.50016 1587247 1521240 1450 1400794 1346221 1205098 1242 11.50001 1015 1012055016233 BLOG 25 22 2430 210041 10.019931685490 1793554 170553716240 15.40543 1474 1415179 1255036 124 1.6 10 01.04.2014 1710 > 26.00570 2200 2213 2145355 20.1045 19.07 170037 102101614107 15:3310 1450072 1320 121 11.102 10.00.450112181 9702 0 33169 MASS 27.2005 2.734 23.0222 2210250 20 12200 18017041424 18. 14263211.72523303 0902