9. On 1 July 2015, Vertical Ltd leased a processing plant to Bell Ltd. The plant was purchased by Vertical Ltd on 1 July 2019 for its fair value of $959,424. The lease agreement contained the following provisions: Lease term 3 years Economic life of plant 5 years Present value of MLP $934,224 Annual rental payment, in arrears (commencing 30/6/2020) $300,000 Residual value at end of the lease term $157,594 Residual guaranteed by lessee $127,594 Interest rate implicit in lease 6% The lease is cancellable only with the permission of the lessor. Bell Ltd intends to return the processing plant to the lessor at the end of the lease term. The lease has been classified as a finance lease by both the lessee and the lessor. Required Prepare the lease receipt schedule for the lessor (show all workings
9. On 1 July 2015, Vertical Ltd leased a processing plant to Bell Ltd. The plant was purchased by Vertical Ltd on 1 July 2019 for its fair value of $959,424. The lease agreement contained the following provisions:
Lease term 3 years
Economic life of plant 5 years
Present value of MLP $934,224
Annual rental payment, in arrears (commencing 30/6/2020) $300,000
Residual value at end of the lease term $157,594
Residual guaranteed by lessee $127,594
Interest rate implicit in lease 6%
The lease is cancellable only with the permission of the lessor.
Bell Ltd intends to return the processing plant to the lessor at the end of the lease term.
The lease has been classified as a finance lease by both the lessee and the lessor.
Required
Prepare the lease receipt schedule for the lessor (show all workings
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