In the Audit of the LOL Financial Statement, the auditor

In the Audit of the LOL Financial Statement, the auditor wanted to inspect the least transaction of the client. You ascertained that there are 4 Financial Lease Contracts acquired by the client the following are data similar to all 4 of the Lease Contracts:

a. Base Lease Payment is P500,000 Semi-Annually

B. All Leased Assets have a 10-Year Useful Life

c. All Leases were acquired by Lotus by Paying a P300,000 Lease Bonus

d. All Lease Contracts have 12 Year Lease Term

e. Residual Value Guaranteed by the Lessor is P500,000

f. Residual Value Unguaranteed by the Lessee if P250,000 Residual Value of the Asset at the End of 10 Years is 100,000 while the end of its useful life at

G. the end of 12 Years is 400,000

h. Incremental Borrowing Rate Known by the Lessee 12%

I. Purchase Option 100,000

MIDZY Residences Audit Findings are as follows:

A.) Client has shown no interest in exercising the Purchase Option despite it being a Bargain however the Lessor has promised to transfer the property to the client after the Lease Term.

b.) The Lessor Also Reimbursed P100,000 of the Lease Bonus.

c.) The Lessor also gave 2 years Lease Free period for the client

d.) "It seems the owner of the residences really likes the client"

How much is the Carrying Amount of the Lease Liability at the Inception of the Lease?

How much is the Right of Use Asset?

How much is the Interest Expense in the 4th Year of Operations?

How Much is the Depreciation Expense of the Right of Use Asset in the 6th Year?

How Much is the Depreciation Expense of the Right of Use Asset at the 6th Year