Emilia leases an asset to its customer on 1 January 20X5. The lease term is 5 years. The lease payments of $10, 000 are received in arrears. The economic lifetime of the asset is 8 years. The fair value of the asset was $40, 000 which is equal to the present value of the minimum lease payments. The rate implicit in the lease was 8%. Emilia prepares accounts with a year end of 31 December. Which of the following statements are true?
A.
Investment income of $3, 200 is recorded within the statement of profit or loss
B.
Emita will record a right of-use asset and lease liability when entering the lease agreement
C.
The lease receivable would have a carrying amount of $40, 00 at the year end.
D.
Emiia still records and depreciates the asset leased to the customer .