8. PIPO Co enters into the lease of a piece of machinery for $10,000 per annum for 5 years at 9.5%. According to IFRS 16 leases what is the amount of expenses that should be incorporated in the first year in the profit and loss statement DS 6955.74 6352.28 14034.69 15364.71
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- 4. What amount should be reported as gross profit on sale? of current year, an equipment was leased to another entity France Company is a dealer in equipment. At the beginning Problem 14-15 (IAA) with the following provisions: Annual rental payable at the end of each year Lease term and useful life of machinery Cost of equipment Residual value-unguaranteed Implicit interest rate PV of an ordinary annuity of 1 at 12% for 5 periods PV of 1 at 12% for 5 periods 1,500,000 5 years 4,000,000 500,000 12% 3.60 0.57 At the end of the lease term the equipment will revert to the lessor. The entity incurred initial direct cost of P200,000 in finalizing the lease agreement. 1. What is the gross investment in the lease? a. 7,500,000 b. 8,000,000 c. 4,000,000 d. 4,500,000 2. What is the net investment in the lease? a. - 5,400,000 b. 5,685,000 c. 4,000,000 d. 3,500,000 3. What interest income should be reported for current year? а. 682,200 b. 648,000 c. 900,000 d. 960,000 a. 1,485,000 b. 1,685,000 c.…On 1.1 2016 YZ company leased Equipment from ABC company, the fair value of Equipment OMR680496 and useful life of it 5 years without residual value, the lessee paid rental payments of OMR123000 at the beginning of each year. The lessee's incremental borrowing rate 12%. The interest expense on 13/12/2016 should be: Select one: a. OMR 44831 O b. OMR44351 c. OMR 35451 O d. None of the optionsMNO Ltd leases an asset as a lessee. The lease agreement is for 6 years. Lease instalments of R145545 made at the beginning of the period and interest is 9%. The commencement of the lease is 1 April 2021. Asset is depreciated over 4 years. The tax rate is 28%. Lease payments are allowed as a deduction when oaid. Profit before tax is R600 000. Journalise the transactions for the year wnded 31 december 2021
- On 1.1 2016 YZ company leased Equipment from ABC company, the fair value of Equipment OMR680496 and useful life of it 5 years without residual value, the lessee paid rental payments of OMR123000 at the beginning of each year. The lessee's incremental borrowing rate 12%. The balance on 1/1/2016 should be: Select one: a. OMR373594 O b. OMR123000 c. None of the options d. OMR474245Seventeen Company is a dealer in machinery. At the beginning of current year, a machinery was leased to another entity with the following provisions: Annual rental payable at the end of each year Lease term and useful life of machinery Cost of machinery Residual value-unguaranteed Implicit interest rate PV of an ordinary annuity of 1 for 5 periods at 12% PV of 1 for 5 years at 12% 3,000,000 5 years 8,000,000 1,000,000 12% 3.60 0.57 At the end of the 5-year lease term, the machinery will revert to Seventeen. Seventeen incurred initial direct cost of P300,000 in finalizing the lease agreement. 1. What amount should be reported as total unearned interest income? a. 4,630,000 b. 4,200,000 c. 5,200,000 d. 3,630,000 2. What amount should be reported as gross income on sale? a. 7,700,000 b. 3,070,000 c. 2,500,000 d. 3,370,000 3. What amount should be reported as interest income for current year? a. 1,364,400 b. 1,296,000 C 1,800,000 d. 926,000After the fourth year, the residual value was estimated at The lease provided for a transfer of title to the lessee at the and four year-end rental payments. The lease qualified as a Module4_Lease.pdf x of the asset was P7,994,000. Terms of the lease specify four-year life for the lease, an annual interest rate of 15% Ericson Company leased an asset to another entity. The coet 12 / 19 100% Problem 13-13 (IAA) direct financing lease.. The lease provided for a transfer of title to the lessee After the fourth year, the residual value was estimated P1,000,000. The PV of 1 at 15% for 4 periods is .572, and the PV of a ordinary annuity of 1 at 15% for 4 periods is 2.855. What is the annual rental payment? a. 2,000,000 b. 3,000,350 c. 2,800,000 d. 2,599,650
- JK Ltd leased equipment to Co. EF for 8 years, at which time the asset will revert to JK Ltd. The equipment cost JK Ltd $16m and has an expected useful life of 12 years. Its selling price is $22.4m. The present value of the lease payments is $20.4m. The first payment was made at the commencement of the lease. Required: How should JK Ltd classify this list and why?C Co acquired an item of plant under a lease on 1 January 2*19. The present value of the lease payments was $46,387,746 and the rentals are $18,000,000 per annum paid in arrears for three years on 31 December each year. The interest rate implicit in the lease is 8% per annum. 1 What amount will appear under non-current liabilities in respect of this lease in the statement of financial position at 31 December 2*19? (Answer to nearest $000) A. $14,288,980 B. $15,432,099 C. $16,666,667 D. $18,000,000 E. None of these answer choices are correct.BNM Itd. Acquired on asset of Rs. 440,000 through a finance lease agreement on 1-1-2018 with no residual value. The lease term is five years with annual lease rentals of Rs .100,000 payable at the start of each year. The implicit rate of interest is 10% . Calculate: a. Gross investment in lease b. Net investment in lease c. Unearned finance income d: Lease amortization schedule
- 2. Gramwell International Ltd leased equipment from Lubsal Financial Group Ltd. The details are as follows: Start of Lease April 1, 2021 Lease term (non cancellable) 5 years Annual lease payment due at the end of each year beginning April 1, 2021 $142,500 Fair value of asset at April 1, 2021 $650,000 Economic life of leased equipment 7 years Residual value of equipment at end of lease term, unguaranteed by the lessee $126,350 Lessee’s incremental borrowing rate 8% The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line depreciation method for all equipment. (Round all figures to the nearest $1.) i) Calculate the lease liability for Gramwell International Ltd. ii) Prepare the journal entries for Gramwell International Ltd at the start of the lease on April 1, 2021. iii) Prepare the lease journal entries for Gramwell International Ltd for the year ended December 31, 2021. iv) Prepare the…France Company is a dealer in equipment. At the beginning of current year, an equipment was leased to another entity Problem 14-15 (IAA) with the following provisions: Annual rental payable at the end of each year Lease term and useful life of machinery Cost of equipment Residual value-unguaranteed Implicit interest rate PV of an ordinary annuity of 1 at 12% for 5 periods PV of 1 at 12% for 5 periods 1,500,000 5 years 4,000,000 500,000 12% 3.60 0.57 At the end of the lease term the equipment will revert to the lessor. The entity incurred initial direct cost of P200,000 in finalizing the lease agreement. 1. What is the gross investment in the lease? a. 7,500,000 b. 8,000,000 c. 4,000,000 d. 4,500,000 2. What is the net investment in the lease? a. - 5,400,000 b. 5,685,000 c. 4,000,000 d. 3,500,000 3. What interest income should be reported for current year? a. 682,200 b. 648,000 c. 900,000 d. 960,000 4. What amount should be reported as gross profit on sale! a. 1,485,000 b. 1,685,000 c.…2. Gramwell International Ltd leased equipment from Lubsal Financial Group Ltd. The details are as follows: Start of Lease April 1, 2021 Lease term (non cancellable) 5 years Annual lease payment due at the end of each year beginning April 1, 2021 $142,500 Fair value of asset at April 1, 2021 $650,000 Economic life of leased equipment 7 years Residual value of equipment at end of lease term, unguaranteed by the lessee $126,350 Lessee’s incremental borrowing rate 8% The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line depreciation method for all equipment. (Round all figures to the nearest $1.) i) Calculate the lease liability for Gramwell International Ltd. ii) Prepare the journal entries for Gramwell International Ltd at the start of the lease on April 1, 2021. iii) Prepare the lease journal entries for Gramwell International Ltd for the year ended December 31, 2021. iv) Prepare the…