Current Attempt in Progress

Tamarisk Corp., which uses IFRS, signs a 4-year, non-cancellable lease agreement to lease equipment from Labelle Ltd. The following information concerns the lease agreement.

1.		The equipments fair value on July 1, 2020 is $261,000.
2.		The agreement requires equal rental payments of $55,400 beginning on July 1, 2020.
3.		The equipment has an estimated economic life of 5 years, with an unguaranteed residual value of $81,100. Tamarisk Corp. depreciates similar equipment using the straight-line method, with no residual value.
4.		The lease is non-renewable. At the termination of the lease, the equipment reverts to Labelle.
5.		Tamarisks incremental borrowing rate is 6% per year. The lessors implicit rate is not known by Tamarisk Corp.
6.		The yearly rental payment includes $3,399.08 of executory costs related to insurance on the equipment.

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Your answer is partially correct.

Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the right-of-use asset and lease liability. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

The amount of the right-of-use asset

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