sharene entered into an agreement to lease an item of plant on 1st october 2019. The lease required four annual payments of 200,000 each, commencing on 1st october 2019. The plant has a useful life of four years and is to be scrapped at the end of this period. The present value of the lease payment is 700,000. The implicit interest rate within the lease is 10%. what is the amount of right-use of the asset as at 31st march 2020
sharene entered into an agreement to lease an item of plant on 1st october 2019. The lease required four annual payments of 200,000 each, commencing on 1st october 2019. The plant has a useful life of four years and is to be scrapped at the end of this period. The present value of the lease payment is 700,000. The implicit interest rate within the lease is 10%. what is the amount of right-use of the asset as at 31st march 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
sharene entered into an agreement to lease an item of plant on 1st october 2019. The lease required four annual payments of 200,000 each, commencing on 1st october 2019. The plant has a useful life of four years and is to be scrapped at the end of this period. The present value of the lease payment is 700,000. The implicit interest rate within the lease is 10%. what is the amount of right-use of the asset as at 31st march 2020?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education