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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: (1) 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 (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 retumed to Maria Logistic Company (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 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) (6) 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) (0) 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 case liability has already been made). (2 marks) (1) Compound Interest Table (Present Value of 1 Due in N periods) Number of Years 1 2 3 4 5 7 9 10 11 12 14 15 Interest Rate 19 3 45 5 75 8 9 105 119 126 134 0.92010 0.98019 0.97057 0.96154 0.95228 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.91 0.96117 0.94260 0.92456 0.90703 O. KOVO 0.8744 0.85734 0.84168 0.x2645 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 09 0.92185 O.XXX.49 OXSENO 0.82270 0.79200 0.76290 0.71503 0.70.43 0.68 VI 0.65873 0.63552 0.61332 0.95147 0.90573 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 064993 0.62092 0.59145 0.56743 0.54276 0.94205 0.88797 0.83748 0.79031 0.74622 0.70196 0.66614 061017 0.54627 0.56447 0:51464 0.50661 0.48032 0.91272 0.87056 0.81300 0.75992 0.71068 0.66506 0.62275 O.SK349 054703 0.51316 0.48166 0.45235 0.42506 0.92148 O.RS 149 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.37616 0.91414 0.8.1676 0.76642 0.70259 0.64.461 0.59190 054393 OS25 0.4603 0.42410 0.36092 0.61 0.312 0.90529 0.82035 0.74400 0.67556 0.61301 0.558.19 OSORIS 0.46319 0.42241 0.38554 0.35218 0.32197 0.29490 0.89632 0.026 0.72242 064958 0.58 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0,28748 0.20070 0.88745 0.78849 0.70138 062460 0.55684 0.49197 0.44401 0.19711 0.15553 0.31663 0.28584 0.25665 0.23071 0.87866 0.77303 0.68095 0.60057 0.53032 0.46854 0,41496 0.16770 0.32618 0.28% 0.25751 0.22917 0.20416 086996 0.75788 0.66112 0.57748 0.50507 044230 0.18782 0.16046 0.29025 0.26333 0.23199 0,20162 0.18068 0.86135 0.74.101 0.64186 OS5826 0.48102 0.41727 0.16345 0.31534 0.27454 0.21919 0.2000 0.18270 0.1999 0.85282 0.72845 0.62317 0.53191 0.45811 0.1968 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.14150 0.84438 0.71416 0.60502 051337 0.416.10 0.371% 0.31657027027 0.23107 0.19784 0.1661 0.14564 0.12522 0.8102 0.70016 0.58799 0.49163 0.41552 0.1504 0.29586 0.25025 0.21199 0.17986 0.15282 0.1.2004 0.11081 0.82774 0.68643 0.57029 047464 0.39573 0.3051 0.27651 023171 0.194.19 0.16351 0.13768 0.11611 OOONS 0.81954 0.67297 0.55368 045639 0.37689 0.31180025842 0.21455 0.17843 0.14864 0.12403 0.10467 0.08678 0.81143 065978 0.53755 0.43883 0.35894 0.29416 0.24151 0.19866 0.16370 0.1351) 0.11174 0.09256 0.07680 0801.00 0.616 0.52189 042196 0.44185 0.27751 0.22571 0.16194 0.15018 0.12285 01067 0.01264 00795 0.79544 0.63416 O.S. 0.40573 0.32557 0.261 ND 0.21095 0.12002 0.13778 0.1116N 0.0% 0.07379 0.00014 0.78757 0.62172 0.49193 0.39012 0.31007 0.34698 0.19715 0.15770 0.12640 0.10153 0.08170 0,06588 0,05323 0.77977 0.609530.47761 0.37512 0.29530 0.233000.18425 0.14602 0.11597 0,09230 0.07361 0,05882 0.04710 0.77205 0.59758 0.46.100 0.16069 0.28124 0.21981 0.17220 0.13520 0.106.39 0.08.191 0.06631 0.05252 0.04168 0.76440 0.58586 0.45019 014682 0.26785 0.20737 0.16093 0.12519 0.00761 0.07628 0.05974 0.01689 0.03689 0.75684 0.57437 03148 0.25509 0.1956 0.15010 0.11591 0.08955 0.06934 0.05382 0.04187 0.03264 0.74934 0.56311 032065 0.24295 0.18456 0.14056 0.10733 0.08215 0.06304 0.01849 0.03738 0.02889 0.74192 0.55207 O.JOKI2 0.23138 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.02557 16 17 18 19 20 21 23 24 25 26 27 2x SOLEPO SEPTO 66117 (11) Present Value of an Annuity Due of $1 PVADA NO IN Not o's 40% 4 7. 10.04 12.04 12.04 200% 100000 100000 100000 100000 10000 100000 10000 10000 100000 100000 10000 100000 10000 10000 100000 10000 10000 10000 21.2010 1522 1.0309197561 1970 19154 1.500 1.230 11:30 193458 1.250 1.9 120 1333 3207040 2.955 204144202242 2.017 2.19000 260 267267 261 2042 2003 2002 2036 276011 27554 2.71232 2.0 2.52778 4 1.000 191220 380 381 382 2014 177500 2.746 372325 073 367 322 157710 353122140120183 21048 50197440 44197 1708 1739 SOSIS 7211 2012 2017 6555.72645.7134 S3 S2 S1505 5451820 5.32048 2700521236 10020 2021 SONO 9001 0110 101000134171020120146157870530174 511141 #7.2010 750021 74710 7340307 7.1104 700205220 X 60 26 60 60320 SM 1220 SL BA 415038.3254617014 019 273274 774682133457.2007 671 453423523614012576483716 10.02 02.1992 170 180 433 27107027220 701 75123 762 61 633205 22000 11 10.42130 10 22218002500206 05 16 0110000122272133 x 771008 27.12.002 1934 12 113 1107112 10 10,5121 10:25 10.00155 0522 14 700 7400 13 12100 11.2 11.575.34 112576 10 500 100 100 1011658251 MB 10 701 7112367.10.2 14 13.13344 127353 12.4037 11.8310 143401034 10 10.40205 10.0 10.11.10 15 100370 13.6 110 120 120 11.92052 11543121122201 10. 10.10.2015 AVIT 1057 16.MOS 1442131926 13:30138 12.03704 12.01741 12.118 1175 113 1103758 1071225 10107 SW 2.0 1 105.674) 17 15.71717 1513126 145777 OSO 1256110 1100413 120 121 122 11.16 11.10500 101 1286371677 572056 18 16 14 15 025 15.20107 1071220141012146132 13166671270710 12.27807 114 11.67726 1076322 10.121040900195 8.5 81193 57753 19 1 27 1667286 15 203 125336 14.75381 11 13000 131 124 1240 110 111 101.5563920141 17 581219 20 18.2001 1742417 16.67846.90 1520 14704 14133 13 13.0032 12.0 12.15012 12.2010.01.2012 21 19.04555 164 17.10 16.50016 157 15 21240 145000 1400704 114 12.909 12.4.2 11.50601 S 1012055 2056 233 MB 25 22 24210 2102041 10.019 16.06499 17.03554 17.058716240061540541 14.704 1415179 1256336 12.4033610 701 702 710 0 26.000 24368 22.43 21.453SS 20.1545 100377 17.9371701 1614107 15:3310 1002 13710 120 100 4501 0101 102 0 33190 MASA 27.000 27X14 23.0222 2210250 20 19.220 11017041424 11. 2013 12 11.7252 063303 992