On 1 July 2020, the company had entered into a five-year lease agreement for an asset with RF S.A.O.G. The company must make lease payments of OMR 100,000 annually at the beginning of each year. The present value of the total lease payments is RO 379,000. The estimated useful life of the asset is 5 years. The cost of capital used is 10 %. Calculate the amount that will be charged in the income statement with regards to such asset for the year ended 31st December 2020. Oa OMR 100,000. Ob.OMR 51,850. O C OMR 75,800. Od. OMR 50,000.
On 1 July 2020, the company had entered into a five-year lease agreement for an asset with RF S.A.O.G. The company must make lease payments of OMR 100,000 annually at the beginning of each year. The present value of the total lease payments is RO 379,000. The estimated useful life of the asset is 5 years. The cost of capital used is 10 %. Calculate the amount that will be charged in the income statement with regards to such asset for the year ended 31st December 2020. Oa OMR 100,000. Ob.OMR 51,850. O C OMR 75,800. Od. OMR 50,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
Transcribed Image Text:On 1 July 2020, the company had entered into a five-year lease agreement for an asset with RF S.A.O.G. The company must make lease payments of
OMR 100,000 annually at the beginning of each year. The present value of the total lease payments is RO 379,000. The estimated useful life of the
asset is 5 years. The cost of capital used is 10%. Calculate the amount that will be charged in the income statement with regards to such asset for the
year ended 31st December 2020.
Oa OMR 100,000.
Ob.OMR 51,850.
O C OMR 75,800.
Od. OMR 50,000.
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