Solve b n January 1, 20x1, POLTROON Co. leased a piece of equipment to COWARD, Inc. Information onthe lease is as follows:Cost of equipmentP1,200,0005 years4 yearsUseful life of equipmentLease termAnnual rent payabie at the end of each yearInterest rate implicit in the leaser400,00010%Residual valueP80,000The equipment will revert back to POLTROON at the end of the lease term. The lease is classified as salestype lease.a. How much is the gross investment in the lease on January 1, 20x1 assuming the residual value isguaranteed?b. How much are the sales and cost of sales if the residual value is unguaranteed?

Concept of lease Accounting Sales type lease Accounting Calculation of Gross Investment in…

=e is as follows: Cost of equipment P1,200,000 Useful life of equipment 5 years Lease term 4 years Annual rent payabie at the end of each year P400,000 Interest rate implicit in the lease 10% Residual value P80,000 ent will revert back to POLTROON at the end of the lease term. The lease is classified a

=e is as follows: Cost of equipment P1,200,000 Useful life of equipment 5 years Lease term 4 years Annual rent payabie at the end of each year P400,000 Interest rate implicit in the lease 10% Residual value P80,000 ent will revert back to POLTROON at the end of the lease term. The lease is classified a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is a double-entry? Give an example?
b. Working/Application of ABC analysis?
provide answer with explantion
next answer?
Explain title Mechanics’ Liens?
explain the fill answer
*Question:- r what is anticulation of the Pinarcial statement meons Elaborate.
b. Discuss the effect on c and p, when there is an increase in: i. So ii. iii. O K
How do I solve this
is thsi correct?