Problem 1 At the beginning of 2022, EVS Industries acquired a machine with fair value of P6,074,700 by signing a 4-year lease, which is the expected useful life of the machine passing. The lease is payable in four equal annual payments of P2 million at the end of each year. The implicit rate in the lease is 12% 21. What is the initial cost of the right of-use-asset?
Problem 1 At the beginning of 2022, EVS Industries acquired a machine with fair value of P6,074,700 by signing a 4-year lease, which is the expected useful life of the machine passing. The lease is payable in four equal annual payments of P2 million at the end of each year. The implicit rate in the lease is 12% 21. What is the initial cost of the right of-use-asset?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Problem 1
At the beginning of 2022, EVS Industries acquired a machine with fair value of
P6,074,700 by signing a 4-year lease, which is the expected useful life of the
machine passing. The lease is payable in four equal annual payments of P2 million at
the end of each year. The implicit rate in the lease is 12%
21. What is the initial cost of the right of-use-asset?
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