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

question 70

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:

Indirect Means

Pertains to methods or approaches that are not straightforward or direct in achieving a goal or effecting outcomes, often involving secondary or less obvious pathways.

Mental Age

A measure of an individual's mental attainment based on the age at which it is normal for an individual to reach that level of mental capacity.

Developmental Level

A measure of an individual's growth or advancement in physical, cognitive, social, or emotional areas relative to age or stage expectations.

Intelligence Quotient

A measure of a person's intellectual abilities relative to others, based on standardized tests.