On 1 January 20X1, the Asteral group leases out under an operating lease an office building acquired for 900,000, depreciated on a straight-line basis over 30 years with no residual value, in line with its policy for similar buildings. The lease term is 6 years, at a constant payment of 120,000 a year, payable in advance. Asteral incurred initial direct costs of 18,000. Compute total 20X1 expenses relating to this lease (depreciation of the building and initial direct costs) and the net result of this lease in 20X1.
- Cost of the building
- 900,000
- Useful life of the building
- 30
- Initial direct costs
- 18,000
- Lease term
- 6
- Constant annual payment
- 120,000