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QUESTION 9 Alpine Ltd signed an 8-year non-cancellable lease with Mt Buller Ltd for the use of high-tech equipment. The following information is available: Lease
QUESTION 9 Alpine Ltd signed an 8-year non-cancellable lease with Mt Buller Ltd for the use of high-tech equipment. The following information is available: Lease term 8 years Salvage value at the end of the term $10 000 Bargain purchase option at the end of the term $20 000 Minimum lease payments at the end of each year) $120 000 Service costs included in minimum lease payments 520 000 Rate implicit in the contract 1296 Cumulative present value factor at 12% for 8 years 4.9676 Present value factor at 12% for sth year 0.4039 What is the amount to be recorded as an asset and a liability in the books of the lessee that is in accordance with ASB 117 Leases? O $0 O $604 190 5504 838 O $596 112
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