Alpine Ltd Signed a 10-Year Non-Cancellable Lease with Mt Buller

question 20

Multiple Choice

Alpine Ltd signed a 10-year non-cancellable lease with Mt Buller Ltd for the use of high-tech equipment.No bargain purchase option is provided in the lease contract. The following information is available.
What is the amount to be recorded as an asset and a liability in the books of the lessee that is in accordance with AASB 117 "Leases"?

• A) $0;
• B) $120 000;
• C) $125 000;
• D) $200 000;
• E) None of the given answers

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Definitions:

Short Bones

Bones that are as wide as they are long, providing support and stability with little to no movement, found in the wrist and ankles.

Vertebral Bones

The bones that make up the vertebral column or spine, providing structural support and protecting the spinal cord.

Tarsals

Tarsals are the seven short bones that make up the ankle and the rear portion of the foot, helping to distribute body weight in standing and walking.

Shallow Depression

A minor or surface indentation or dimple on an object or body part.