The Following Is an Extract from a Lease Payment Schedule

question 15

Multiple Choice

The following is an extract from a lease payment schedule for Lessee Pty Limited.Assuming Lessee Pty Limited uses the current/non-current dichotomy to disclose liabilities,what are the amounts of (a) current liabilities; and (b) non-current liabilities,relating to this lease,disclosed by Lessee Pty Limited at 30 June 2012? $\begin{array}{|c|c|c|c|}\hline \text { Date } & \begin{array}{c}\text { Lease } \\\text { payment }\end{array} & \begin{array}{c}\text { Interest } \\\text { expense }\end{array} & \begin{array}{c}\text { Present value of } \\\text { lease liability }\end{array} \\\hline \text { 01 July 2009 } & & & 21506 \\\hline \text { 30 June 2010 } & 3500 & 2151 & ? \\\hline\end{array}$

• A)(a) current 2601; (b) non-current 26 012
• B)(a) current 1976; (b) non-current 13 268
• C)(a) current 1796; (b) non-current 15 243
• D)(a) current 1633; (b) non-current 17 039

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Definitions:

Hatch Act

A U.S. federal law that prohibits civil service employees in the executive branch from engaging in some forms of political activity.

Political Management

The strategic planning, organization, and direction of political campaigns, parties, or candidates, aiming to achieve electoral success and influence policy-making.

Spoils System

A practice where a political party, after winning an election, gives government jobs to its supporters, friends, and relatives as a reward for working toward victory, and as an incentive to keep working for the party.

Civil Service

Employment in public sector organizations, typically within government, where appointments and promotions are determined by merit and qualifications rather than political affiliation.