Styles 17. The following information relates to a lease contract: Lease commencement: 1/1/20X1 . Annual lease payments of $3,000 due each 12/31 beginning 12/31/20X1 End of lease term: 1/1/20X5 There are 4 lease payments in all Useful life of asset at commencement: 10 yrs. Expected residual value at 1/1/20X5: $6,000 Lessee is given option to purchase asset at 1/1/20X5 for $1,000 Using an interest rate of 10%, what is the present value of future lease payments for the lessee at inception? a) $10,193 b) $9,510 c) $10,419 d) $13,608 e) $13,000 18. Which is true for biological assets? a) b) c) d) e) Picked grapes are revalued at cost or fair value model under ASPE Picked grapes are revalued at cost or revaluation model under IFRS. Hogs used to grow meat are revalued at FV less cost to sell under ASPE. Chicken used to lay eggs are measured using the NRV model under ASPE Hogs used to grow meat are revalued at NRV under ASPE since they are agricultural inventories. Sub