Lessee: Bridge LimitedLessor: Path Leasing CompanyLease term: 5 yearsLease payment frequency: AnnualLease payment amount: Rs. 80,000 (paid on January 1 of each year)Market price of the machine: Rs. 320,000Present value of minimum lease payments: Rs. 313,100Implicit interest rate: 14%Useful life of the machine: 5 yearsDepreciation method: Straight-lineRequired Information:(i) Compute minimum lease payments.

 A lessee enters into a five-year lease of a building which has a remaining useful life of ten years. Lease payments are $50,000 per annum, payable at the beginning of each year. The lessee incurs initial direct costs of $20,000 and receives lease incentives of $5,000. There is no transfer of the asset at the end of the lease and no purchase option. The interest rate implicit in the lease is not immediately determinable but the lessee's incremental borrowing rate is 5%. At the commencement date the lessee pays the initial $50,000, incurs the direct costs and receives the lease incentives. The lease liability is measured at the present value of the remaining four payments:

On December 31, 20X0, a company leases equipment for 8 years, its entire life. Payments are $10,000 per year on December 31 with the first one made immediately. The present value of these payments at the lessee's incremental borrowing rate of 10 percent per year is assumed to be $58,000. On the December 31, 20X0 balance sheet, what should this lessee report as its current liability for this lease?

On January 1, Year One, Green Company leases a machine for four years. Because Green is a relatively new business and is struggling with its cash flows, the lessor sets the payments as $10,000 per year for the first two years and $20,000 for the last two years. These payments were computed based on an implicit interest rate of 10 percent per year. The contract does not meet any of the five criteria to be reported as a finance lease. What amount of expense should Green recognize in Year Two?

On January 1, 20X0, a company leases equipment for 8 years, its entire life. Payments are $10,000 per year on January 1 with the first one made immediately. The present value of these payments at the lessee's incremental borrowing rate of 10 percent per year is assumed to be $58,000. The present value of these payments at the lessor's implicit interest rate (which is known by the lessee) of 8 percent is assumed to be $62,000. What amount of interest expense should the lessee recognize for 20X0?

On 1 July 20X5, Bow Ltd leased equipment to Tie Ltd.  The terms of the contract are as follows:Lease term10 yearsEconomic life of the equipment13 yearsAnnual lease payment, in arrears (commencing 30 June 20X6)$2,500Fair value of the equipment at 1 July 20X5$19,517Residual value at end of lease (not guaranteed)$2,000Residual value at end of economic lifenilInterest rate implicit in lease6%PV factor of $1 at end of one year0.9434PV factor for annuity of $1 per year for 10 years (6%)7.3601PV factor of annuity of $1 per year for 13 years (6%)8.8527PV factor of $1 at end of 10 years (6%)0.5584The lease is non-cancellable, and at the end of the lease the equipment will be returned to Bow (lessor). The lease has been classified as a finance lease by Bow.What is the reported amount of the current liability (rounded to the nearest whole dollar) in the balance sheet of the lessee at the end of 30 June 20X7 in accordance with the requirements of AASB 16 Leases?