After the fourth year, the residual value was estimated atThe lease provided for a transfer of title to the lessee at theand four year-end rental payments. The lease qualified as aModule4_Lease.pdf xof the asset was P7,994,000. Terms of the lease specifyfour-year life for the lease, an annual interest rate of 15%Ericson Company leased an asset to another entity. The coet12 / 19100%Problem 13-13 (IAA)direct financing lease..The lease provided for a transfer of title to the lesseeAfter the fourth year, the residual value was estimatedP1,000,000.The PV of 1 at 15% for 4 periods is .572, and the PV of aordinary annuity of 1 at 15% for 4 periods is 2.855.What is the annual rental payment?a. 2,000,000b. 3,000,350c. 2,800,000d. 2,599,650

Annual rental payment = Cost of the assets / PV of an ordinary annuity of 1 at 15% for 4 periods

After the fourth year, the residual value was estimated at Ericson Company leased an asset to another entity. The c The lease provided for a transfer of title to the lessee at the and four year-end rental payments. The lease qualified as a of the asset was P7,994,000. Terms of the lease specify four-year life for the lease, an annual interest rate of 15% cout direct financing lease.. The lease provided for a transfer of title to the lessee end of the lease term. P1,000,000. The PV of 1 at 15% for 4 periods is .572, and the PV of 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

After the fourth year, the residual value was estimated at Ericson Company leased an asset to another entity. The c The lease provided for a transfer of title to the lessee at the and four year-end rental payments. The lease qualified as a of the asset was P7,994,000. Terms of the lease specify four-year life for the lease, an annual interest rate of 15% cout direct financing lease.. The lease provided for a transfer of title to the lessee end of the lease term. P1,000,000. The PV of 1 at 15% for 4 periods is .572, and the PV of 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

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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