Interest rate implicit in the lease: 10% Unguaranteed residual value: P150,000 • Initial direct cost: P20,000 The lease reverts to Maroon Co. at the end of the lease term. Note: Round-off present value factors to four decimal places. Round-off cents to peso. How much is the total interest income to be earned over the lease term?

Interest rate implicit in the lease: 10% Unguaranteed residual value: P150,000 • Initial direct cost: P20,000 The lease reverts to Maroon Co. at the end of the lease term. Note: Round-off present value factors to four decimal places. Round-off cents to peso. How much is the total interest income to be earned over the lease term?

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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