Problem 4LLL company has an equipment with carrying value of P350,000 and with remainingestimated life of 5 years. On January 1, 2022, the LLL Company entered into anexchange transaction with Orange Company to transfer the equipment satisfied therequirements of IFRS 15 "Revenue from Contracts with Customers". The transferproceeds amounted to P450,000 while the annual rental payable at the end of eachyear amounts to P100,000 with an incremental borrowing rate of 8%. LLLimmediately leased back the said property for the remaining life of the property on thesame date. The transfer proceeds is at fair value.28. What is the cost of the right-of-use asset on the inception of the leasecontract? Problem 4LLL company has an equipment with carrying value of P350,000 and with remainingestimated life of 5 years. On January 1, 2022, the LLL Company entered into anexchange transaction with Orange Company to transfer the equipment satisfied therequirements of IFRS 15 "Revenue from Contracts with Customers". The transferproceeds amounted to P450,000 while the annual rental payable at the end of eachyear amounts to P100,000 with an incremental borrowing rate of 8%. LLLimmediately leased back the said property for the remaining life of the property on thesame date. The transfer proceeds is at fair value.29. How much is the gain or loss on rights transferred on the sale and leasetransactions?

As per IFRS 16 Leases, the Initial cost of the right-to-use asset in the books of lessee shall…

LLL company has an equipment with carrying value of P350,000 and with remaining estimated life of 5 years. On January 1, 2022, the LLL Company entered into an exchange transaction with Orange Company to transfer the equipment satisfied the requirements of IFRS 15 "Revenue from Contracts with Customers". The transfer proceeds amounted to P450,000 while the annual rental payable at the end of each year amounts to P100,000 with an incremental borrowing rate of 8%. LLL immediately leased back the said property for the remaining life of the property on the same date. The transfer proceeds is at fair value. 28. What is the cost of the right-of-use asset on the inception of the lease çontract?

LLL company has an equipment with carrying value of P350,000 and with remaining estimated life of 5 years. On January 1, 2022, the LLL Company entered into an exchange transaction with Orange Company to transfer the equipment satisfied the requirements of IFRS 15 "Revenue from Contracts with Customers". The transfer proceeds amounted to P450,000 while the annual rental payable at the end of each year amounts to P100,000 with an incremental borrowing rate of 8%. LLL immediately leased back the said property for the remaining life of the property on the same date. The transfer proceeds is at fair value. 28. What is the cost of the right-of-use asset on the inception of the lease çontract?

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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