Ali Co. has signed a six-year lease contract to purchase an alligator shear on 1 July 2020, with the present value of $28,000,000 at the purchase date. ACC Co. must pay a 10% finance charge annually and a deposit of $3,000,000. $8,000,000 annual rents will be paid on 30 June for six years. Calculate the amount that should. be recorded as the current liability in the Statement of Financial Position as at 30 June 2021. A. $6,050,000 B. $19,500,000 C.$8,500,000 D. $13,450,000

Ali Co. has signed a six-year lease contract to purchase an alligator shear on 1 July 2020, with the present value of $28,000,000 at the purchase date. ACC Co. must pay a 10% finance charge annually and a deposit of $3,000,000. $8,000,000 annual rents will be paid on 30 June for six years. Calculate the amount that should. be recorded as the current liability in the Statement of Financial Position as at 30 June 2021. A. $6,050,000 B. $19,500,000 C.$8,500,000 D. $13,450,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 1P

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