At the beginning of current year, an entity sold an equipment with remaining life of 10 years and immediately leased it back for 4 years at the prevailing market rental. Annual rental payable at the end of each year Problem 15-13 (IFRS) Sale price at fair value Carrying amount of equipment 6,000,000 4,500,000 800,000 10% Implicit interest rate Present value of an ordinary nnuity of 1 at 10% for four periods 3.17 1. What is the initial lease liability?

At the beginning of current year, an entity sold an equipment with remaining life of 10 years and immediately leased it back for 4 years at the prevailing market rental. Annual rental payable at the end of each year Problem 15-13 (IFRS) Sale price at fair value Carrying amount of equipment 6,000,000 4,500,000 800,000 10% Implicit interest rate Present value of an ordinary nnuity of 1 at 10% for four periods 3.17 1. What is the initial lease liability?

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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