19. Winn Co. manufactures equipment that is sold or leased. On Dec 31, 20x6, Winn leased equipment to Bart for a five year period ending Dec 31, 2x11, at which date ownership of the leased asset will be transferred to Bart. Equal payment under the lease are P22,000 (including P2,000 paymer for non-lease components of the contract) and are due on December 31 of each year. The first payment was made on Dec 31, 20x6. Collectability of the remaining lease payments is reasonably assured, and Winn has no material cost uncertainties. The normal sales price of the equipment is P77,000 and the cost is P60,000. For the year ended Dec 31, 20x6, what amount of income should Winn realize from the lease transaction? a.17,000 b. 22,000 c. 23,000 d. 33,000
19. Winn Co. manufactures equipment that is sold or leased. On Dec 31, 20x6, Winn leased equipment to Bart for a five year period ending Dec 31, 2x11, at which date ownership of the leased asset will be transferred to Bart. Equal payment under the lease are P22,000 (including P2,000 paymer for non-lease components of the contract) and are due on December 31 of each year. The first payment was made on Dec 31, 20x6. Collectability of the remaining lease payments is reasonably assured, and Winn has no material cost uncertainties. The normal sales price of the equipment is P77,000 and the cost is P60,000. For the year ended Dec 31, 20x6, what amount of income should Winn realize from the lease transaction? a.17,000 b. 22,000 c. 23,000 d. 33,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:19. Winn Co. manufactures equipment that is sold or leased. On Dec 31, 20x6, Winn leased equipment to Bart for a five year period ending Dec 31,
2x11, at which date ownership of the leased asset will be transferred to Bart. Equal payment under the lease are P22,000 (including P2,000 payment
for non-lease components of the contract) and are due on December 31 of each year. The first payment was made on Dec 31, 20x6. Collectability of
the remaining lease payments is reasonably assured, and Winn has no material cost uncertainties. The normal sales price of the equipment is
P77,000 and the cost is P60,000. For the year ended Dec 31, 20x6, what amount of income should Winn realize from the lease transaction?
a.17,000
b. 22,000
c. 23,000
d. 33,000
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