The following information is extracted from a lease schedule in the records of Kennards Ltd

The information is for equipment acquired under a finance lease agreement.

Required

Based on the information from this lease schedule of Kennards Ltd what is

(a) The amount of the Fair value of the Lease Liability (1 mark)

(b) The amount of the Right of Use Equipment (1 mark)

(c) The lease interest rate (1 mark)

(d) The length of the term of the lease (1 mark)

(e) The date of the first lease payment (1 mark)

(f) Assuming the leased equipment will be returned at the end of the lease term, use this lease schedule to prepare the journal entries for the year ended 30 June 2021. (2 mark)

(g) Applying this lease schedule how would this information appear in the Balance Sheet as at 30 June 2021. (2 mark)

(h) Briefly explain how depreciation is considered for any right of use lease asset and how the number of years is determined when depreciating any right of use lease asset. (2 mark)