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

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.

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