Question 1 of 4 0.44 / 1 = Current Attempt in Progress Your answer is partially correct. Crane Ltd., a public company following IFRS 16, recently signed a lease for equipment from Costner Ltd. The lease term is 6 years and requires equal rental payments of $18,893 at the beginning of each year. The equipment has a fair value at the lease's inception of $103,000, an estimated useful life of 6 years, and no residual value. Crane pays all executory costs directly to third parties. The appropriate interest rate is 4%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Using tables, a financial calculator, or Excel functions, calculate the amount of the right-of-use asset and lease liability. Prepare the initial entry to reflect the signing of the lease agreement and the first payment under the lease. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit 93499 74499 Cash 19000Question 3 of 4 - 12 5 The following facts are for a non-cancellable lease agreement between Oriole Corporation and Russell Corporation, a lessee: Inception date July 1, 2020 Annual lease payment due at the beginning of each year, starting July 1, 2020 $ 20,954.73 Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell $ 3,900.00 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $ 43,800.00 Fair value of asset at July 1, 2020 $ 89,800.00 Lessor's implicit rate 10% Lessee's incremental borrowing rate 10% The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Oriole use IFRS 16. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Calculate the amount of the right-of-use asset and lease liability. (Round factor values to 5 decimal places, e.g, 1.25124 and finalCalculate 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 2 decimal places, e.g. 52.75.) Amount $ Prepare a lease amortization schedule for the lease obligation using a computer spreadsheet for Russell Corporation for the five- year lease term. (Round answers to 2 decimal places, e.g. 52.75.) Russell Corporation (Lessee) Lease Amortization Schedule Annual Lease Interest (10%) Reduction of Balance Date Payment on Unpaid Lease of Lease Plus BPO Obligation Obligation Obligation 7/1/20 $ 7/1/20 $ $ 7/1/21Question 3 of 4 -12 5 7/1/21 7/1/22 7/1/23 7/1/24 6/30/25 $ $ $ Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Russell's annual accounting period ends on December 31, and Russell does not use reversing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit CreditQuestion 3 of 4