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vanhoe Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Oriole Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan. 1, 2023 Economic life of leased equipment Annual rental payments starting Jan. 1, 2023 Option to purchase at the end of the term Depreciation method Residual value Ivanhoe's incremental borrowing rate (a) January 1, 2023 5 years $240,000 7 years $40,850 none The amount of the right-of-use asset $ Straight-line none Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. 6% Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, 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 0 decimal places, e.g. 5,275.) Prepare the initial entry to reflect the signing of the lease agreement. (List all debit entries before credit entries. Credit account titles are

vanhoe Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Oriole Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan. 1, 2023 Economic life of leased equipment Annual rental payments starting Jan. 1, 2023 Option to purchase at the end of the term Depreciation method Residual value Ivanhoe's incremental borrowing rate (a) January 1, 2023 5 years $240,000 7 years $40,850 none The amount of the right-of-use asset $ Straight-line none Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. 6% Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, 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 0 decimal places, e.g. 5,275.) Prepare the initial entry to reflect the signing of the lease agreement. (List all debit entries before credit entries. Credit account titles are

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ivanhoe Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Oriole Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan. 1, 2023 Economic life of leased equipment Annual rental payments starting Jan. 1, 2023 Option to purchase at the end of the term Depreciation method Residual value Ivanhoe's incremental borrowing rate (a) The amount of the right-of-use asset $ January 1, 2023 5 years $240,000 7 years $40,850 Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Date none Jan. 1, 2023 Straight-line Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, 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 O decimal places, e.g. 5,275.) none Account Titles and Explanation 6% Prepare the initial entry to reflect the signing of the lease agreement. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Debit Credit
Transcribed Image Text:Ivanhoe Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Oriole Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan. 1, 2023 Economic life of leased equipment Annual rental payments starting Jan. 1, 2023 Option to purchase at the end of the term Depreciation method Residual value Ivanhoe's incremental borrowing rate (a) The amount of the right-of-use asset $ January 1, 2023 5 years $240,000 7 years $40,850 Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Date none Jan. 1, 2023 Straight-line Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, 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 O decimal places, e.g. 5,275.) none Account Titles and Explanation 6% Prepare the initial entry to reflect the signing of the lease agreement. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Debit Credit
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