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

Inception date		July 1, 2023
Annual lease payment due at the beginning of each year, starting July 1, 2023			$20,442.46
Bargain purchase option price at end of lease term reasonably certain to be exercised by Bonita			$4,200.00
Lease term			5 years
Economic life of leased equipment			10 years
Lessor's cost			$47,400
Fair value of asset at July 1, 2023			$89,400
Lessor's implicit rate			9%
Lessee's incremental borrowing rate			9%

The collectibility 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 Bonita and Pharoah use IFRS.

(a)Calculate the amount of the right-of-use asset and lease liability. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75.)

Amount

$enter a dollar amount

b) Prepare the lease amortization schedule for the lease obligation using a computer spreadsheet for Bonita Corporation for the five-year lease term. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75.)

C) Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2023 and 2024. Bonita corporation's annual accounting period ends on December 31, and Bonita corporation does not use reversing entries.