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

question 71

Multiple Choice

For the following lease,under IFRS,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | } \hline \text { Annual payment (due at end of year) } & \$ 23,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 10 \% \\\hline \text { Implicit rate (known to lessee) } & 8 \% \\\hline \text { Unguaranteed residual value } & \mathrm { NA } \\\hline \text { Guaranteed residual value } & 20,000 \\\hline\end{array}$$

• A)99,607
• B)102,711
• C)105,444
• D)108,847

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