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please show workings On 1 October 2019, Conston Ltd (which prepares accounts to...

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Accounting

imageplease show workings
On 1 October 2019, Conston Ltd (which prepares accounts to 30 September) leases an asset to a lessee. The lease term is five years and the lessee is required to make lease payments of 27,500 each on 1 October 2019, 2020, 2021, 2022 and 2023. The fair value of the asset on 1 October 2019 is 112,500. Conston Ltd incurs initial direct costs of 430 and the rate of interest implicit in the lease is 12.5%. At the end of the lease term, ownership of the asset will remain with Conston Ltd, by which time the asset is expected to have come to the end of its economic life and to have a scrap value of 5,000. The net investment in the lease at commencement is (1) ] Select) and the carrying amount of the net investment in the lease at 30 September 2020 will be (2) [" [ Select) ') PRIH

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