purchase a new and improved X-ray machine. The list price of the X-ray machine is GH¢245,000. on ol e 120 The payment schedule as provided in the agreement is as follows: Initial deposit GH90,000 31 December 2021 GH¢67,500 31 December 2022 GH¢61,750 31 December 2023 GH 45,600| 31 December 2024 GH37,400 Agya Clinic estimates that economic benefits will flow from its X-ray machines to the business for a period of 15 years, after which it will be disposed offas scrape at GH¢32,000. Required: i. Determine the hire purchase price and the interest amount included in this amount i1. Apportion the hire purchase interest amount over the relevant periods using the sum of years digits method
purchase a new and improved X-ray machine. The list price of the X-ray machine is GH¢245,000. on ol e 120 The payment schedule as provided in the agreement is as follows: Initial deposit GH90,000 31 December 2021 GH¢67,500 31 December 2022 GH¢61,750 31 December 2023 GH 45,600| 31 December 2024 GH37,400 Agya Clinic estimates that economic benefits will flow from its X-ray machines to the business for a period of 15 years, after which it will be disposed offas scrape at GH¢32,000. Required: i. Determine the hire purchase price and the interest amount included in this amount i1. Apportion the hire purchase interest amount over the relevant periods using the sum of years digits method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
purchase a new and
improved X-ray machine. The list price of the X-ray machine is GH¢245,000. on ol e 120
The payment schedule as provided in the agreement is as follows:
Initial deposit GH90,000
31 December 2021 GH¢67,500
31 December 2022 GH¢61,750
31 December 2023 GH 45,600|
31 December 2024 GH37,400
Agya Clinic estimates that economic benefits will flow from its X-ray machines to the
business for a period of 15 years, after which it will be disposed offas scrape at GH¢32,000.
Required:
i. Determine the hire purchase price and the interest amount included in this amount
i1. Apportion the hire purchase interest amount over the relevant periods using the sum
of years digits method
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