Question: On January 1 , 2 0 2 3 , Crane Corp., which uses IFRS, signs a 1 0 - year, non - cancellable lease agreement

On January 1,2023, Crane Corp., which uses IFRS, signs a 10-year, non-cancellable lease agreement to lease a specialty lathe from Liu
Inc. The following information concerns the lease agreement.
The agreement requires equal rental payments of $69,310 beginning on January 1,2023.
The lathe's fair value on January 1,2023, is $470,000.
The lathe has an estimated economic life of 12 years, with an unguaranteed residual value of $17,000. Crane depreciates
similar equipment using the straight-line method.
The lease is non-renewable. At the termination of the lease, the lathe reverts to the lessor.
Crane's incremental borrowing rate is 9% per year. The lessor's implicit rate is not known by Crane.
The yearly rental payment includes $2,121.52 of executory costs related to insurance on the lathe.
Assume this is a manufacturer/dealer lease.
On January 1,2023, Crane Corp., which uses IFRS, signs a 10-year,

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