Camia Company is in the business of leasing new hi-tech equipment. All are classified as direct financing lease. At the end of the lease term, the equipment will revert to Camia Company. On January 1, 2021, an equipment was leased to another entity with the following information: Cost of equipment P 5,500,000 Residual value – guaranteed 400,000 Annual rental payable in advance 959,500 Useful life and lease term 8 years First lease payment January 1, 2021 1. The interest implicit in the lease (rounded to the nearest percentage) is: 2. What is the carrying amount of the net lease receivable to be presented in the December 31, 2022 statement of financial position?
Camia Company is in the business of leasing new hi-tech equipment. All are classified as direct financing lease. At the end of the lease term, the equipment will revert to Camia Company. On January 1, 2021, an equipment was leased to another entity with the following information: Cost of equipment P 5,500,000 Residual value – guaranteed 400,000 Annual rental payable in advance 959,500 Useful life and lease term 8 years First lease payment January 1, 2021 1. The interest implicit in the lease (rounded to the nearest percentage) is: 2. What is the carrying amount of the net lease receivable to be presented in the December 31, 2022 statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Camia Company is in the business of leasing new hi-tech equipment. All are classified as direct financing lease. At the end of the lease term, the equipment will revert to Camia Company. On January 1, 2021, an equipment was leased to another entity with the following information:
Cost of equipment P 5,500,000
Residual value – guaranteed 400,000
Annual rental payable in advance 959,500
Useful life and lease term 8 years
First lease payment January 1, 2021
Cost of equipment P 5,500,000
Residual value – guaranteed 400,000
Annual rental payable in advance 959,500
Useful life and lease term 8 years
First lease payment January 1, 2021
1. The interest implicit in the lease (rounded to the nearest percentage) is:
2. What is the carrying amount of the net lease receivable to be presented in the December 31, 2022 statement of financial position ?
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