Whiterun Ltd owned a boat that has an economic useful life of 6 years as at 1
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Question:
- Whiterun Ltd owned a boat that has an economic useful life of 6 years as at 1 July 2020. On 1 July 2020 the company leased the boat to Riverwood Ltd for three years. In the lease agreement, Riverwood Ltd agreed to guarantee $5 000 residual value. The annual lease payment is $30,000. Lease payments are to be made in arrears. The interest rate implicit in the lease for Riverwood Ltd is 5%. What is the amount of Riverwood Ltd's lease liability on the commencement day of the lease?
$86 017
$56 017
$90,012
$80 012
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