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Barry Limited and Allen Limited enter into a finance lease agreement with the following terms: - lease term is 4 years - estimated economic life
Barry Limited and Allen Limited enter into a finance lease agreement with the following terms: - lease term is 4 years - estimated economic life of the leased asset is 5 years - 4 annual rental payments of $15 000 each payable in advance - residual value at the end of the lease term is not guaranteed by the lessee - interest rate implicit in the lease is 8%. On inception date, the present value of the lease payments is:
a) $53656
b) 38656
c) $49682
d) $60000
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