Diamond Corporation entered into a finance or capital lease on January 1, 2014. The lease term is

Question:

Diamond entered into a finance or capital lease on January 1, 2014. The lease term is six years and requires annual rental payments of $30,000 at the beginning of each year. Diamond's incremental borrowing rate is 8% and the rate implicit in the lease is 9%.
(a) Calculate the capitalized amount of the leased asset if Diamond follows IFRS.
(b) Calculate the capitalized amount of the leased asset if Diamond follows ASPE.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...