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11. Seek, Inc. leases out a brand new asset to Found Co. Information on the lease is as follows: Annual rental payable at the end of each year -P80,000 lease term- 4 years Useful life of the asset - 7 years Purchase cost of the asset (equal to current price) - 600,000 Discount rate- 10% The lease does not provide a transfer of ownership or a purchase option. The asset is not specialized in nature. What amount of asset resulting from the lease should seek, Inc. recognize at the lease commencement date? a. 253,589 O b. 276, 272 O c. 313, 098 d. 0

11. Seek, Inc. leases out a brand new asset to Found Co. Information on the lease is as follows: Annual rental payable at the end of each year -P80,000 lease term- 4 years Useful life of the asset - 7 years Purchase cost of the asset (equal to current price) - 600,000 Discount rate- 10% The lease does not provide a transfer of ownership or a purchase option. The asset is not specialized in nature. What amount of asset resulting from the lease should seek, Inc. recognize at the lease commencement date? a. 253,589 O b. 276, 272 O c. 313, 098 d. 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11. Seek, Inc. leases out a brand new asset to Found Co. Information on the lease is as follows: Annual rental payable at the end of each year -P80,000 lease term- 4 years Useful life of the asset - 7 years Purchase cost of the asset (equal to current price) - 600,000 Discount rate- 10% The lease does not provide a transfer of ownership or a purchase option. The asset is not specialized in nature. What amount of asset resulting from the lease should seek, Inc. recognize at the lease commencement date? O a. 253,589 O b. 276, 272 O c. 313, 098 O d. 0
Transcribed Image Text:11. Seek, Inc. leases out a brand new asset to Found Co. Information on the lease is as follows: Annual rental payable at the end of each year -P80,000 lease term- 4 years Useful life of the asset - 7 years Purchase cost of the asset (equal to current price) - 600,000 Discount rate- 10% The lease does not provide a transfer of ownership or a purchase option. The asset is not specialized in nature. What amount of asset resulting from the lease should seek, Inc. recognize at the lease commencement date? O a. 253,589 O b. 276, 272 O c. 313, 098 O d. 0
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