At the beginning of the current year, CPA Co, leased a machine to CMA Co. The machine had an original cost of P6,000,000. The lease term was five years and the implicit interest rate on the lease was 15%. The lease is properly classified as a direct financing lease. The annual payments of P1,750,000 are made each December 31. The machine reverts to lessor at the end of the lease term, at which the residual value of the machine will be P275,000 which is unguaranteed. Required: Write answer without peso sign with commas. What is the total financial revenue?
At the beginning of the current year, CPA Co, leased a machine to CMA Co. The machine had an original cost of P6,000,000. The lease term was five years and the implicit interest rate on the lease was 15%. The lease is properly classified as a direct financing lease. The annual payments of P1,750,000 are made each December 31. The machine reverts to lessor at the end of the lease term, at which the residual value of the machine will be P275,000 which is unguaranteed. Required: Write answer without peso sign with commas. What is the total financial revenue?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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At the beginning of the current year, CPA Co, leased a machine to CMA Co. The machine had an original cost of P6,000,000. The lease term was five years and the implicit interest rate on the lease was 15%. The lease is properly classified as a direct financing lease. The annual payments of P1,750,000 are made each December 31. The machine reverts to lessor at the end of the lease term, at which the residual value of the machine will be P275,000 which is unguaranteed.
Required: Write answer without peso sign with
commas.
What is the total financial revenue?
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ACPAR 21354
At the beginning of the current year, CPA Co, leased a
machine to CMA Co. The machine had an original cost
of P6,000,000. The lease term was five years and the
implicit interest rate on the lease was 15%. The lease is
properly classified as a direct financing lease. The
annual payments of P1,750,000 are made each
December 31. The machine reverts to lessor at the end of
the lease term, at which the residual value of the
machine will be P275,000 which is unguaranteed.
Required: Write answer without peso sign with
commas.
What is the total financial revenue?
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