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Vaughn, a technology company that uses IFRS for its financial reporting, has been found polluted the property surrounding its plant. The property is leased for

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Vaughn, a technology company that uses IFRS for its financial reporting, has been found polluted the property surrounding its plant. The property is leased for 1 agreed that when the lease expires, the pollution will be remediated before transfer back The lease has a renewal option for another 8 years. If this option is exercised, the cleanup will be done at the end of the renewal period. There is a 70% chance that the lease will not be the cleanup will cost $253000. There is 30% chance that the lease will be me need and the cleanup costs will be $513000 at the end of the 20 years. If you assume that these estimates are derived from best estimates of likely outcomes and the risk-free rate is 5%, the expected present value of the cleanup provision is: 2 years and VaughS to its owner cenexed and A $379620 $331000 $156620 D $309955 Bramble Corp. maintains its accounting records using IFRS. The company recently signed a lease for a new office building, for a lease period of 10 years. Under the lease agreement, a security deposit of $29000 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 9% per year. what amount will the company receive at the time the lease expires? F5 A $55100. $36674. $186113. D $68653

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