Swifty Dairy Ltd$.$ leases its milk cooling equipment from Blue Spruce Finance Corporation. Both companies use IFRS. The lease has the following terms:

The lease is dated May $30,2023,$ with a lease term of eight years. It is non$-$cancellable and requires equal rental payments of $$29,800$ due each May $30,$ beginning in $2023.$

The equipment has a fair value and cost at the inception of the lease of $$210,962,$ an estimated economic life of $10$ years, and a residual value $($which is guaranteed by Swifty Dairy$)$ of $$23,600.$

The lease contains no renewal options and the equipment reverts to Blue Spruce Finance on termination of the lease.

Swifty Dairy's incremental borrowing rate is $6\%$ per year; the implicit rate is also $6\%.$

Swifty Dairy uses straight$-$line depreciation for similar equipment that it owns.

Collectibility of the payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

$($a$2)$

Using $(1)$ tables. $(2)$ a financial calculator, or $(3)$ Excel functions calculate the PV of the ieace payments and guaranteed residual value under the lease. $($Round factor walues to $5$ decimal places, es$.1\mathrm{.}25124$ and final answer to $0$ decimal places, eg$.5,275.)$

PV of the lease payments and guaranteed residual value