The following facts are for a non-cancellable lease agreement between Alpha Corporation and Beta Corporation, a lessee:

Inception Date	July 1, 2018
Annual lease payment due at the beginning of each year, starting July 1, 2018	$20,066.26
Purchase option price at end of lease term reasonably certain to be exercised by Beta	$4,500.00
Lease term	5 years
Economic life of leased equipment	10 years
Lessors cost	$60,000.00
Fair value of asset at July 1, 2018	$88,000.00
Lessors implicit rate	9%
Lessees incremental borrowing rate	9%

The collectability of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Beta and Alpha use IFRS 16.

Required:

1. Calculate the amount of the right-of-use asset and lease liability.

2..Discuss the nature of this lease to Beta Corporation, the lessee.

3. Discuss the nature of this lease to Alpha Corporation, the lessor.

4. Prepare a lease amortization schedule for the lease obligation using a computer spreadsheet for Beta Corporation for the five-year lease term.

5. Prepare the journal entries on the lessees books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2018 and 2019. Betas annual accounting period ends on December 31, and Beta does not use reversing entries