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pelow fair value puilding unt of building payable at the end of each year est rate of an ordinary annuity of or 5 periods 18,000 20,000 24,000 1,000

pelow fair value puilding unt of building payable at the end of each year est rate of an ordinary annuity of or 5 periods 18,000 20,000 24,000 1,000

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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building with remaining useful life of 30 years and At the beginning of current year, Judy Company sold a 5. What is the net annual rent income of the buyer-lessor? Problem 15-14 (IFRS) immediately leased it back for 5 years. Sale price at below fair value Fair value of building Carrying amount of building Annual rental payable at the end ofeach year Implicit interest rate Present value of an ordinary annuity of 1 at 12% for 5 periods 18,000,000 20,000,000 24,000,000 1,000,000 12% 3.60 1. What is the initial lease liability? a. 3,600,000 b. 4,000,000 c. 4,800,000 d. 2. What the cost of right of use asset? a. 3,000,000 b. 4,320,000 c. 5,760,000 d. 6,720,000 3. What is the loss on right transferred? a. 4,000,000 b. 2,880,000 c. 5,760,000 d. 6,720,000 4. What is the interest expense of the seller-lessee for the current year? a. 120,000 b. 576,000 c. 672,000 d. 432,000 a. 400,000, b. 200,000 c. 300,000 d. 100,000 19 I 19 + Рage
Transcribed Image Text:building with remaining useful life of 30 years and At the beginning of current year, Judy Company sold a 5. What is the net annual rent income of the buyer-lessor? Problem 15-14 (IFRS) immediately leased it back for 5 years. Sale price at below fair value Fair value of building Carrying amount of building Annual rental payable at the end ofeach year Implicit interest rate Present value of an ordinary annuity of 1 at 12% for 5 periods 18,000,000 20,000,000 24,000,000 1,000,000 12% 3.60 1. What is the initial lease liability? a. 3,600,000 b. 4,000,000 c. 4,800,000 d. 2. What the cost of right of use asset? a. 3,000,000 b. 4,320,000 c. 5,760,000 d. 6,720,000 3. What is the loss on right transferred? a. 4,000,000 b. 2,880,000 c. 5,760,000 d. 6,720,000 4. What is the interest expense of the seller-lessee for the current year? a. 120,000 b. 576,000 c. 672,000 d. 432,000 a. 400,000, b. 200,000 c. 300,000 d. 100,000 19 I 19 + Рage
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