Stockalia leases a storage container for 6 months from 1 November 20X1, with no purchase option, and applies the short-term lease exemption to this class of assets. It pays 9,000 in advance at the beginning of each quarter, that is on 1 November 20X1 and 1 February 20X2. Compute the lease expense for the year ended 31 December 20X1.
- Lease term (months)
- 6
- Quarterly payment in advance
- 9,000