Alpine Ltd signed an 8-year non-cancellable lease with Mt Buller Ltd for the use of high-tech equipment. The following information is available: Lease term 8 years Salvage value at the end of the term $10 000 Bargain purchase option at the end of the term $20 000 Minimum lease payments (at the end of each year) $120 000 Service costs included in minimum lease payments$20 000 Rate implicit in the contract 12% Cumulative present value factor at 12% for 8 years 4.9676 Present value factor at 12% for 8th year 0.4039.

 What is the amount to be recorded as an asset and a liability in the books of the lessee that is in accordance with AASB 117 Leases?  

Answer rating: 100% (QA)

According to AASB 117 Leases the lessee should recognize a ROU RightofUse asset and a corresponding lease liability on its balance sheet at the commen... View the full answer