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  3. the following facts are for a non-cancellable leas

The following facts are for a non-cancellable lease transaction between Lessee and Lessor. Both uses...

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The following facts are for a non-cancellable lease transaction between Lessee and Lessor. Both uses IFRS and has Dec 31 year end date. If you can not see the numbers, "zoom out" from your browser's view settings. Inception Date 1-Jan-2020 Lease Term 10 years 21,598 Annual Lease Payment Due at beginning of each year starting from Jan 1, 2020 Executory Cost, to be paid by Lessee and is included in the annual payment 1,500 Fair Value of Leased Asset and Cost of Asset to Lessor 136,421 Economic Life of Leased Asset 12 years 1,500 Bargain Price Option at end of lease term, which is expected to be exercised by Lessee and to be paid on Dec 31, 2029. Lessor's implicit rate, known to Lessee 10% Lessee's incremental rate of borrowing 11% Requirement 1 At inception, Lessee will record Right of Asset lease to the amount of: Requirement 2 Interest Expense Recorded by Lessee in the following years will be: 2020 2022 2027 2029 Requirement 3 Lessee will present the following Lease Liability balances on the balance sheets of Dec 31 for the following years: 2021 2028 Requirement 4 Which of the following criteria is met for this lease from lessee's perspective to classify this lease as capital lease

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