Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the lease expenses for the year ended 31 December 2021 for Kwamashu Traders Pty Ltd) Kwamashu Traders Pty (Ltd) leases a desktop from
Calculate the lease expenses for the year ended 31 December 2021 for Kwamashu Traders Pty Ltd) Kwamashu Traders Pty (Ltd) leases a desktop from Tayob Inc for a period of 24 months. This lease qualifies as a lease of a low value asset, and thus qualifies for the recognition exemption. Kwamashu Traders Pty (Ltd) chooses to apply the recognition exemption to this lease. The lease payment is R20 000 per month for the first year (2021) and R25 500 per month for the second year (2022). The lease commenced on 01 April 2021, Kwamashu Traders Pty (Ltd) has a 31 December year end. O AR200 000. O B. R204 750. O C. R306 000. OD. R240 000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started