Geiberger AG manufactures drones. On December 31, 2018, it leased to Althaus SA a drone that had

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Geiberger AG manufactures drones. On December 31, 2018, it leased to Althaus SA a drone that had cost €120,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires five equal annual rentals of €40,800 payable each December 31, beginning December 31, 2018. An interest rate of 8% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Geiberger's December 31, 2018, journal entries.
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Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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