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On 1 July 20X5, Bow Ltd leased equipment to Tie Ltd. The terms of the...

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Accounting

On 1 July 20X5, Bow Ltd leased equipment to Tie Ltd. The terms of the contract are as follows:

Lease term10 yearsEconomic life of the equipment13 yearsAnnual lease payment, in arrears (commencing 30 June 20X6)$2,500Fair value of the equipment at 1 July 20X5$19,517Residual value at end of lease (not guaranteed)$2,000Residual value at end of economic lifenilInterest rate implicit in lease6%PV factor of $1 at end of one year0.9434PV factor for annuity of $1 per year for 10 years (6%)7.3601PV factor of annuity of $1 per year for 13 years (6%)8.8527PV factor of $1 at end of 10 years (6%)0.5584

The lease is non-cancellable, and at the end of the lease the equipment will be returned to Bow (lessor). The lease has been classified as a finance lease by Bow.

What is the reported amount of the current liability (rounded to the nearest whole dollar) in the balance sheet of the lessee at the end of 30 June 20X7 in accordance with the requirements of AASB 16 Leases?

Group of answer choices

$15,524

$13,956

$1,480

$1,569

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