w ordepreciene the undenyng asset? LO T1.10, 11.12 16. Rankin Ltd has entered into an agreement to lease an item of equipment that produces teddy bears. The terms of the lease are as follows: Date of entering lease: 1 July 2019. Duration of lease: 10 years. Life of leased asset: 10 years. There is no residual value. Lease payments: $5000 at lease inception, $5500 on 30 June each year (that is, 10 payments). Included within the lease payments are executory costs of $500. Fair value of the machine at lease inception: $27 470. les REQUIRED soee Determine the interest rate implicit in the lease. LO 11.8 P ontorcinto..non.cancellahle fve-vear lease agreement with Earnie Ltd on 1 July 2019. The lease is or an w ordepreciene the undenyng asset? LO T1.10, 11.12 16. Rankin Ltd has entered into an agreement to lease an item of equipment that produces teddy bears. The terms of the lease are as follows: Date of entering lease: 1 July 2019. Duration of lease: 10 years. Life of leased asset: 10 years. There is no residual value. Lease payments: $5000 at lease inception, $5500 on 30 June each year (that is, 10 payments). Included within the lease payments are executory costs of $500. Fair value of the machine at lease inception: $27 470. les REQUIRED soee Determine the interest rate implicit in the lease. LO 11.8 P ontorcinto..non.cancellahle fve-vear lease agreement with Earnie Ltd on 1 July 2019. The lease is or an