During the year ended 30 September 20X4 Hyper entered into two lease transactions: On 1 October 20X3 a payment of $90,000, being the first of five equal annual payments of a finance lease for an item of plant which has a five-year useful life. The lease has an implicit interest rate of 10% and the fair value (cost to purchase) of the leased equipment on 1 October 20X3 was $340,000 On 1 January 20X4 a payment of $18,000 for a one-year lease of an item of excavation equipment. What amount in total would be charged to Hyper's statement of profit or loss for the year ended 30 September 20X4 in respect of the above transactions?
During the year ended 30 September 20X4 Hyper entered into two lease transactions: On 1 October 20X3 a payment of $90,000, being the first of five equal annual payments of a finance lease for an item of plant which has a five-year useful life. The lease has an implicit interest rate of 10% and the fair value (cost to purchase) of the leased equipment on 1 October 20X3 was $340,000 On 1 January 20X4 a payment of $18,000 for a one-year lease of an item of excavation equipment. What amount in total would be charged to Hyper's statement of profit or loss for the year ended 30 September 20X4 in respect of the above transactions?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the year ended 30 September 20X4 Hyper entered into two lease transactions:
On 1 October 20X3 a payment of $90,000, being the first of five equal annual payments of a finance lease for
an item of plant which has a five-year useful life. The lease has an implicit interest rate of 10% and the fair
value (cost to purchase) of the leased equipment on 1 October 20X3 was $340,000
On 1 January 20X4 a payment of $18,000 for a one-year lease of an item of excavation equipment.
What amount in total would be charged to Hyper's statement of profit or loss for the year ended 30
September 20X4 in respect of the above transactions?
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