On January 1, 2021, Leslie Company lease an equipment from Lestor Company. Information relating to the lease follows: Market value of equipment at inception of the lease--P2,000,000 Carrying amount of equipment at lease inception-------1,500,000 Useful life of equipment ---------------------------------- 8 years Annual lease payment for 6 years every January 1, startiing January 1, 2021---------------------------------418,000 Interest implicit in the lease -------------------------------- 10% Leslie's incremental borrowing rate------------------------- 8% The lease term ends on December 31,2024. Round off present value factor to three decimal places. At what amount would Leslie Company record the right-of-use asset?
On January 1, 2021, Leslie Company lease an equipment from Lestor Company. Information relating to the lease follows:
Market value of equipment at inception of the lease--P2,000,000
Carrying amount of equipment at lease inception-------1,500,000
Useful life of equipment ---------------------------------- 8 years
Annual lease payment for 6 years every January 1,
startiing January 1, 2021---------------------------------418,000
Interest implicit in the lease -------------------------------- 10%
Leslie's incremental borrowing rate------------------------- 8%
The lease term ends on December 31,2024. Round off present value factor to three decimal places. At what amount would Leslie Company record the right-of-use asset?
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