The design studio Graphix leases 25 tablets for 24 months from 1 March 20X1. After analysis, each tablet is a low-value asset (case datum) and Graphix elects the exemption for this lease. The total payment, payable in advance at the beginning of each month, is 300 per month in the first year and then 360 per month in the second year. No other systematic basis is more representative than the straight-line basis. Compute the lease expense for the year ended 31 December 20X1 and the accrued expense at that date.
- Lease term (months)
- 24
- Total monthly payment in the first year
- 300
- Total monthly payment in the second year
- 360