At what amount will Cielo company present its lease liability as of December 31,2022? P 2,204,900P 1,925,390P 2,459,000P 2,690,000 On January 1,2020, Cielo Company leased an equipment from a lessor with the following pertinent information:500,0008 yearsAnnual rental payable at the end of each yearLease termUseful life of equipment10 yearsImplicit interest rate10%PV of an ordinary annuity of 1 for 8 periods at 10%5.33PV of an annuity due of 1 for 8 periods at 10%Present value of 1 for 8 periods at 10%5.870.47The entity has the option to purchase the equipment at the end of the lease term by paying P S00,000 which is significantlylower than the expected fair value of the equipment on the option exercise date. There is reasonable certainty that theentity will exercise the option.

Annual rental payable at the end of each year P5,00,000 Lease Term 8 years Implicit interest…

On January 1,2020, Cielo Company leased an equipment from a lessor with the following pertinent information: Annual rental payable at the end of each year 50,000 8 years 10 years Lease term Useful life of equipment Implicit interest rate PV of an ordinary annulity of 1 for 8 periods at 10% 10% 5.33 PV of an annuity due of 1 for 8 periods at 10% Present value of 1 for 8 periods at 10% 587 0.47 The entity has the option to purchase the equipment at the end of the lease term by paying PS00,000 which is significantly lower than the expected fair value of the equipment on the option exercise date. There is reasonable certainty that the entity will exercise the option.

On January 1,2020, Cielo Company leased an equipment from a lessor with the following pertinent information: Annual rental payable at the end of each year 50,000 8 years 10 years Lease term Useful life of equipment Implicit interest rate PV of an ordinary annulity of 1 for 8 periods at 10% 10% 5.33 PV of an annuity due of 1 for 8 periods at 10% Present value of 1 for 8 periods at 10% 587 0.47 The entity has the option to purchase the equipment at the end of the lease term by paying PS00,000 which is significantly lower than the expected fair value of the equipment on the option exercise date. There is reasonable certainty that the entity will exercise the option.

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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