Reference no: EM132931483

On 1 July 20X1 Lessee Ltd leased some equipment from Lessor Ltd. The details of the lease arrangement are as follows:

1. Lessor acquired the equipment at fair value on 1 July 20X1
2. The lease term was for 6 years
3. The interest rate implicit in the arrangement was 6%
4. The lessee paid an amount of $37,000 per annum to the lessor. The first payment was made on 1 July 20X1
5. The residual value at the end of the lease term was $11,000 of this, an amount of $8,000 was guaranteed by the lessee
6. $2,000 is the amount of the residual value guarantee that was expected to be payable by the lessee to the lessor at the end of the lease term
7. The lessee paid initial direct costs of $621 at the commencement of the lease
8. The lessor paid initial direct costs of $979 at the commencement of the lease
9. The lease is classified as a finance lease by the lessor
10. The leased asset will be returned to the lessor at the end of the lease term

Question 1: Write the amount that would be recognised as the Lease Receivable by Lessor Ltd at the commencement of the lease in accordance with the requirements of AASB 16. Do not include any spaces or dollar signs when you write answer below.