Problem
Larkspur Incorporated purchased metal to build a new roller coaster on December 31, 2020. Larkspur provided a $800,000 down payment and agreed to pay the balance in equal instalments of $280,000 every December 31 for five years. Larkspur could have received a loan from the bank for this amount at 9% interest. Larkspur prepares financial statements in accordance with IFRS.