Question 1Luna Leasing Sdn Bhd (LLSB) agrees to provide Pali Sdn Bhd (PSB) with equipment under anon cancelable lease for 6 years. The cost of equipment is RM65,264. It has an expecteduseful life of 5 years. The lease terms are as follows:i.ii.iii.The equipment will have no residual value when the lease term ends.The lease rental is determined on a 16% rate per annum.PSB agrees to pay all maintenance costs amounted to RM300 per year throughoutthe lease period.iv. Lease rental of RM15,264 per year is to be paid on 31 December each year for 5years commencing 31 December 2021 and RM15,310 is to be paid on the last year ofleasing agreement.The equipment was delivered on 1 January 2021 to PSB. Both companies adjust and closebooks on 31 December every year. PSB depreciates the equipment by using straight linemethod. The title of the equipment is to be passed to PSB at the end of the leaseperiod.Required:a) Discuss the factors that would influence the management's decision to lease ratherthan purchase an asset.'b) Prepare the related journal entries for the year 2021 in the book of LLSB and PSB-1

Question 1a: Factors Influencing Lease vs Purchase DecisionSeveral factors can influence…

Answered: Question 1 Luna Leasing Sdn Bhd (LLSB)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The All-State Mutual Fund has the following 5-year record of performance: . Find this no-load fund's 5-year (2015-2019) average annual compound rate of return. Also find its 3-year (2017-2019) average annual compound rate of return. If an investor bought the fund in 2015 at $10.00 a share and sold it 5 years later (in 2019) at $15.72, how much total profit per share would she have made over the 5-year holding period? This no-load fund's 5-year (2015-2019) average annual compound rate of return is Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) 2018 2017 Net investment income Dividends from net investment income Net realized and unrealized gains (or losses) on security transactions Distributions from realized gains Net increase (decrease) in NAV NAV at beginning of year NAV at end of year 2019 $0.98 (0.95) 4.22 (1.06) $3.19 12.53 $15.72 $0.85 (0.85) 5.08 %. (Round to two decimal places.) (1.00) $4.08 8.45 $12.53 $0.84 (0.85)…
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Please give handwriten solution with explanation
Student question Time Left : 00:09:50 The Apex Company sold a water softener to Marty Smith. The price of the unit was $350. Marty asked for a deferred payment plan, and a contract was written. Under the contract, the buyer could delay paying for the water softener if he purchased the coarse salt for recharging the softener from Apex. At the end of 2 years, the buyer was to pay for the unit in a lump sum, with interest at a quarterly rate of 1.5%. According to the contract, if the customer ceased buying salt from Apex at any time prior to 2 years, the full payment due at the end of 2 years would automatically become due. Six months later, Marty decided to buy salt elsewhere and stopped buying from Apex, whereupon Apex asked for the full payment that was to have been due 18 months hence. Marty was unhappy about this, so Apex offered as an alternative to accept the $350 with interest at 10% per semiannual period for the 6 months. Which alternative should Marty accept?…
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Question 11
Please answer question 2 with details on how to do it. Thank you.

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