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Question - Oriole Inc. entered into a five-year lease of equipment from Matusek Inc on July 1, 2021. The equipment has an estimated economic life of eight years and fair value of $295,000. The present value of the lease payments amounts to $254,415. The lease does not have a bargain purchase option and ownership does not transfer to Oriole at the end of the lease.
Required -
Record the transaction assuming Oriole follows IFRS?
Record the transaction assuming Oriole follows ASPE?
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