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Question 8: Lease presentation 15 marks) D E Question 8: Lease presentation (5 marks) 7 2 AD Ted Co. leases machinery to Nate Ltd. under a 4-year term. Nate Co. has the option to purchase the machinery at the end of the lease term for $10,000, which is considered a bargain. The correct amortization schedule follows: Lease Date 5 Principal Interest payment Balance reduction 6 Jan. 1/20 $ 338,492 7 P1 Jan. 1/20 $ 90,000 $ $ 90,000 248,492 8 P2 Jan. 1/21 90,000 14,910 75,090 173,402 9 P3 Jan. 1/22 90,000 10,404 79,596 93,806 10 P4 Jan. 1/23 90,000 5,628 84,372 9,434 -1 P4 Jan. 1/24 10,000 566 9,434 2 Nate Ltd. drafted the following presentation on its Statement of Financial Position at December 31, 2021: A Cover Sheet 01 02 Q3 Q4 05-DATA 05 REQUIRED Q5 Q7 08 09 + AL Question 8: Lease presentation (5 marks) D 13 Nate Ltd. drafted the following presentation on its Statement of Financial Position at December 31, 2021: Non-Current Liability 15 Lease liability $ 173,402 16 REQUIRED: Prepare the correct lease presentation, with appropriate classification to be presented on Ted Co's Statement of Financial Position at December 31, 2021. Select n/a if the row is not needed. 17 18 Classification Account name Amount 19 20 21 22 23 = Cover Sheet Q1 Q2 Q3 Q4 OS DATA95-REQUIRED 06 Q7 Q8 Q9 +

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