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

Inception dateJuly 1, 2020Annual lease payment due at the beginning of each year, starting July 1, 2020$20,585.16Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell$4,500.00Lease term5 yearsEconomic life of leased equipment10 yearsLessor's cost$41,000.00Fair value of asset at July 1, 2020$90,200.00Lessor's implicit rate9%Lessee's incremental borrowing rate9%

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 Russell and Pharoah use IFRS 16.

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

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

Calculate the amount of gross investment at the inception of the lease for Pharoah Corporation, the lessor.(Round answers to 2 decimal places, e.g. 52.75.)

Gross investment$Enter your answer in accordance to the question statement

Calculate the amount of net investment at the inception of the lease for Pharoah Corporation, the lessor.(Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75.)

Net investment

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