n January 1, 2023, Ivanhoe Inc enters into a 5-year non-cancellable lease with Wilson ltd for equipment that has an estimated useful life of 5 years and a fair value of $2,026,000. Ivanhoe has an incremental borrowing rate at 8% and Wilson’s implicit rate is 6%. Ivanhoe uses the straight- line depreciation method to depreciate assets . Ivanhoe will make annual lease payments on January 1 of each year (with first payment due at the beginning of the lease) based on the fair value of the equipment. The lease agreement includes a guarantee that Ivanhoe will take over ownership of the equipment from Wilson for a final payment of $97,500. Both companies adhere to IFRS A) Calculate the present value of minimum lease payme

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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on January 1, 2023, Ivanhoe Inc enters into a 5-year non-cancellable lease with Wilson ltd for equipment that has an estimated useful life of 5 years and a fair value of $2,026,000. Ivanhoe has an incremental borrowing rate at 8% and Wilson’s implicit rate is 6%. Ivanhoe uses the straight- line depreciation method to depreciate assets . Ivanhoe will make annual lease payments on January 1 of each year (with first payment due at the beginning of the lease) based on the fair value of the equipment. The lease agreement includes a guarantee that Ivanhoe will take over ownership of the equipment from Wilson for a final payment of $97,500. Both companies adhere to IFRS

A) Calculate the present value of minimum lease payments

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