Finance lease Finance lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment. To Compute: the amount of quarterly lease payments in order for M Imports to recover its normal selling price.

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Chapter 15, Problem 15.7BE

To determine

Finance lease

Finance lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment.

To Compute: the amount of quarterly lease payments in order for M Imports to recover its normal selling price.

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