On July 1, 2023, Blossom Corp., which uses IFRS, signs a 4-year, non-cancellable lease agreement to...

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On July 1, 2023, Blossom Corp., which uses IFRS, signs a 4-year, non-cancellable lease agreement to lease a equipment from Wildhorse Ltd. The following information concerns the lease agreement. 1. The equipment's fair value on July 1, 2023 is $265,000. 2. The agreement requires equal rental payments of $56,500.00 beginning on July 1, 2023. 3. The equipment has an estimated economic life of 5 years, with an unguaranteed residual value of $81,900. Blossom 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 Wildhorse. 5. Blossom's incremental borrowing rate is 7% per year. The lessor's implicit rate is not known by Blossom Corp. 6. The yearly rental payment includes $3,248.57 of executory costs related to insurance on the equipment. On July 1, 2023, Blossom Corp., which uses IFRS, signs a 4-year, non-cancellable lease agreement to lease a equipment from Wildhorse Ltd. The following information concerns the lease agreement. 1. The equipment's fair value on July 1, 2023 is $265,000. 2. The agreement requires equal rental payments of $56,500.00 beginning on July 1, 2023. 3. The equipment has an estimated economic life of 5 years, with an unguaranteed residual value of $81,900. Blossom 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 Wildhorse. 5. Blossom's incremental borrowing rate is 7% per year. The lessor's implicit rate is not known by Blossom Corp. 6. The yearly rental payment includes $3,248.57 of executory costs related to insurance on the equipment.