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Blueberry Company signed a 5 years lease agreement on January 1, 2019. Annual payments are RO 40000 at the beginning of each year. At the

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Blueberry Company signed a 5 years lease agreement on January 1, 2019. Annual payments are RO 40000 at the beginning of each year. At the end of the lease, the equipment will revert back to the lessor. The equipment has a useful life of 5 years with no residual value. At the time of the lease agreement, the Fair Value of the equipment is RO 170000, an interest rate of 10.5%, and straight-line depreciation are used. Answer the questions given based on the case and related to the topic in general. Calculate the payment made towards the principal for the base year or year 0 (refer Case Study 1). O a. RO 10354 O b. None of the given options O c. RO 40000 O d. RO 13171 Calculate the opening balance in the Amortization Table for year 1 (refer Case Study 1): O a. None of the given options O b. RO 40000 O c RO 152436 d. RO 125436 a. None of the given options b. RO 40000 c. RO 152436 d. RO 125436 Calculate the Present Value Factor of future lease payments (refer Case Study 1): a. RO 146536 b. RO 165436 c. RO 164536 O d. None of the given options Lessee having the option to purchase the asset at the end of the lease term applies t

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