On 1 January 2019, the Boris Company signed a 3-year non-cancellable lease for an industrial Machine. The terms of the lease called for Boris to make an annual payment of $10,000 at the beginning of each year, starting from 1 January 2019. The second annual payment is on 1 January 2020, and the third on 1 January 2021. The machine has an estimated useful life of 5 years. Boris uses the straight-line depreciation method of depreciation for all assets. The interest rate of this contract is 10%. 

Based on the above information

What would be the impacts on the financial statements of Boris on 1 January 2019？ 

Calculate the increase of the right-of-use, decrease of cash and the increase lease liability?

Answer rating: 100% (QA)

On 1 January 2019 the impacts on the financial statements of Boris would be as follows Increase in t... View the full answer