Sharpist is a car dealer that sells new cars to customers. Either the customers can purchase

the cars using cash or Sharpist will provide lease alternatives to customers. On $28$ December

$2023,$ Sharpist leased a car to Quifil Ltd$.$ The lease term is $6$ years, with annual payments of

$$8,400$ due at the beginning of the year. The first payment is due $1$ January $2024.$ The rate

implicit in the lease is $8\mathrm{.}25\%.$ The car is carried on Sharpist$$s booked at a cost of $$37,000.$ The

unguaranteed residual value at the end of the Iease is $$4,000$ with $2$ years of useful life

remaining. There were no material cost uncertainties at the inception of the lease.