On 1 January 2019, Time Limited entered into a four-year contract to lease a machine. The annual lease payments are£20,000, payable in arrears on 31 December each year. The interest rate implicit in the lease is 10%. There were no initialdirect costs. The first lease instalment was paid on 31 December 2019.Time Limited calculates depreciation on a straight-line basis and the machine is expected to have no residual value at theend of the lease term.RequirementBased upon the information provided above, prepare extracts for the financial statements of Time Limited for the year ended31 December 2019 in accordance with IFRS 16 Leases.Q1 What is the value of the lease liability at the inception of the lease on 1 January 2019 in accordance with IFRS 16Leases?Group of answer choices£20,000£63,38049,380£80,000Q2What is value of the current lease liability on 31 December 2019 in accordance with IFRS 16 Leases?Group of answer choices£34,690£18,180£49,718£15,028Q3What is the total value of the lease liability on 31 December 2019 in accordance with IFRS 16 Leases?Group of answer choices£60,000£80,000£69,718£49,718

Q1 What is the value of the lease liability at the inception of the lease on 1 January 2019 in accordance with IFRS 16 Leases? Group of answer choices £20,000 £63,380 49,380 £80,000 Q2 What is value of the current lease liability on 31 December 2019 in accordance with IFRS 16 Leases? Group of answer choices £34,690 £18,180 £49,718 €15028

Q1 What is the value of the lease liability at the inception of the lease on 1 January 2019 in accordance with IFRS 16 Leases? Group of answer choices £20,000 £63,380 49,380 £80,000 Q2 What is value of the current lease liability on 31 December 2019 in accordance with IFRS 16 Leases? Group of answer choices £34,690 £18,180 £49,718 €15028

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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