The Solaris clinic leases a scanner; the payment, made at year end, follows a healthcare cost index. The management controller proposes remeasuring the lease liability at the current market rate of 7 %, which he considers more representative. At 1 January 20X4, when the review takes effect, the annual payment rises from 60,000 to 61,800 for the last 2 payments. The lease liability is 113,166 (original rate 4 %). Compute the remeasured lease liability and the increase in the right-of-use asset (rounded to the nearest euro).
- Annual payment before the review
- 60,000
- Annual payment revised under the index
- 61,800
- Remaining payments (year end)
- 2
- Original discount rate
- 4 %
- Market rate proposed by the controller
- 7 %
- Lease liability before the review
- 113,166