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A crane which has a remaining useful life of 15 years. Frazzled plc took out...

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Accounting

A crane which has a remaining useful life of 15 years. Frazzled plc took out a three-year lease on 1 April 20X6. Under the lease agreement it pays 270,000 annually in advance. The first instalment was paid on 1 April 20X6 and Frazzled plc received an incentive of 17,500. The interest rate implicit in the lease is 8%. There is no option to buy the asset at the end of the lease term. The asset is depreciated using straight-line.

Calculate the carrying amount of the right-of-use asset in respect of the crane at 30 September 20X6

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