For the Following Lease,under IFRS,determine the Minimum Present Value Calculation

question 65

Multiple Choice

For the following lease,under IFRS,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | } \hline \text { Annual payment (due at end of year) } & \$ 23,150 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 8 \% \\\hline \text { Implicit rate (known to lessee) } & 6 \% \\\hline \text { Guaranteed residual value } & 10,000 \\\hline\end{array}$$

• A)92,431
• B)97,516
• C)99,237
• D)104,989

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Definitions:

Leak

the unintentional entrance or escape of a fluid through a hole or crack.

Pipe

A tube through which liquids or gases can be transported from one place to another.

Passenger Ship

A large vessel designed to carry people across water, often equipped with various amenities for comfort and entertainment.

Disaster

A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.