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

Inception date July 1, 2020

Annual lease payment due at the beginning of each year, starting July 1, 2020

$ 20,053.56

Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell

$ 4,300.00

Lease term

5 years

Economic life of leased equipment

10 years

Lessors cost

$ 57,400.00

Fair value of asset at July 1, 2020

$ 89,400.00

Lessors implicit rate

8%

Lessees incremental borrowing rate

8%

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 Sandhill 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 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

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Prepare a lease amortization schedule for the lease obligation using a computer spreadsheet for Russell Corporation for the five-year lease term. (Round answers to 2 decimal places, e.g. 52.75. 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 2020 and 2021. Russells annual accounting period ends on December 31, and Russell does not use reversing entries. (Credit a