Alpha entered into an operating lease under which it was committed to five annual payments of 50,000

Question:

Alpha entered into an operating lease under which it was committed to five annual payments of £50,000 per year. It was subsequently decided to treat the lease as a Right-of-use asset reported on the Statement of financial position. Alpha’s borrowing rate was 10%.

Required:

Calculate the amount to be reported in the Statement of financial position and Statement of comprehensive income.