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Answer with solution thankyou Problem 5: On December 31, 2020, Pal sold to Air Philippines an airplane with an estimated life of 10 years. At
Answer with solution thankyou
Problem 5: On December 31, 2020, Pal sold to Air Philippines an airplane with an estimated life of 10 years. At the same time, PAL leased back the airplane for three years. Additional information is as follows: Selling price 30,000,000 Carrying value at date of sale 10,000,000 Monthly rental under lease 800,000 Implicit rate in the lease computed by Air Phils. known to PAL 12% Present value of operating lease 800,000 for 36 months at 12% 24,085,600 The leaseback is considered as operating lease Required: 6. In PAL's December 31, 2020 income statement what amount should be included as realized gain on this transactionStep by Step Solution
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