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lease. boy will record a credit to discount on finance lease receivable amounting to: P 2 decimal places only on the discount rate.

lease. boy will record a credit to discount on finance lease receivable amounting to: P 2 decimal places only on the discount rate.

FINANCIAL ACCOUNTING
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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□ Question 18 On August 1, 2020, Boy Corporation leased a machine to ABC company for a 5 year period requiring payments of 100K at the beginning of each lease year. The machine cost 417,000. which is the fair value at the lease date. The machine has a useful life of 5 years with no residual value. boy implicit interest rate is 10%. it was recorded as direct finance lease. boy will record a credit to discount on finance lease receivable amounting to: P 2 decimal places only on the discount rate.
Transcribed Image Text:□ Question 18 On August 1, 2020, Boy Corporation leased a machine to ABC company for a 5 year period requiring payments of 100K at the beginning of each lease year. The machine cost 417,000. which is the fair value at the lease date. The machine has a useful life of 5 years with no residual value. boy implicit interest rate is 10%. it was recorded as direct finance lease. boy will record a credit to discount on finance lease receivable amounting to: P 2 decimal places only on the discount rate.
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