Taylor Ltd entered into a lease arrangement with Swift Ltd on 1 July 2019 for five years. A lease payment of $85,000 are made on 30 June every year, with first payment to be made on 30 June 2020. The implicit interest rate in the lease is 7%. Swift Ltd determined that this contract is non-renewable and contains a lease component. The leased equipment is expected to have an economic life of seven years, after which time it will have an expected salvage value of $15,000. The reporting date for both Taylor Ltd and Swift Ltd is 30 June. Below was the journal entry recorded on the book of Swift Ltd on 1 July 2019:

Dr Right-of-use Asset $348,500

Cr Lease Liability $348,500

Do not include commas and dollar sign ($) in your answer. Present $1,000 as 1000.

What is the interest expense that Swift Ltd should record for the financial year ended on 30 June 2020?

What is the depreciation expense that Swift Ltd should record for the financial year ended on 30 June 2020? What is the balance of Lease Liability on Swift Ltds balance sheet at 30 June 2020?

What is the carrying amount of the leased equipment on the book of Swift Ltd as at 30 June 2024?