The Calimer clinic leases an imaging device. It pays 4 annual lease payments of 60,000 in advance (at the start of each year); the first is paid on the commencement date. The interest rate implicit in the lease, which can be readily determined, is 4 %. Calimer incurred 5,000 of initial direct costs and received from the lessor a lease incentive of 9,000 at the commencement date. No restoration is required. Compute the initial lease liability and the cost of the right-of-use asset (rounded to the nearest euro).
- Annual lease payment made in advance
- 60,000
- Number of lease payments
- 4
- Interest rate implicit in the lease
- 4 %
- Initial direct costs
- 5,000
- Lease incentive received
- 9,000