Jenny Limited leases a machine with a fair value of P109,444 to Rose Limited for 5 years at an annual rental of P25,000 payable in advance and Rose Limited guarantees in full the estimated residual value of P15,000 on return of the asset. 1. What would be the interest rate implicit in the lease?
Jenny Limited leases a machine with a fair value of P109,444 to Rose Limited for 5 years at an annual rental of P25,000 payable in advance and Rose Limited guarantees in full the estimated residual value of P15,000 on return of the asset. 1. What would be the interest rate implicit in the lease?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 10GI: Owens Company leased equipment for 4 years at 50,000 a year with an option to renew the lease for 6...
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Jenny Limited leases a machine with a fair value of P109,444 to Rose Limited for 5 years at an annual rental of P25,000 payable in advance and Rose Limited guarantees in full the estimated residual value of P15,000 on
1. What would be the interest rate implicit in the lease?
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