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Can Please Help Me: Accounting / Intermediate Accounting 2 60 minutes only the given time. Wish you could help me. I will give UPVOTE and
Can Please Help Me: Accounting / Intermediate Accounting 2
60 minutes only the given time. Wish you could help me.
I will give UPVOTE and GOOD FEEDBACK.
12. On January 1, 20x1, Inverse Co. leased a piece of equipment to reimburse, Inc. Information on the lease is as follows. Cost of equipment- P600,000 Useful life of equipment- 5 years Lease term- 4 years Annual rental payable at the end of each year - P220,000 The annual lease payment includes P18,098 pertaining to non-lease component. This amount reflects the stand alone selling price of the service. Inverse Co. incurred P40,000 initial direct costs in negotiating the lease. The interest rate implicit in the lease is 10%. How much are (1) the total interest revenue that Inverse Co. will recognize over the lease term and (2) the carrying amount of the net investment in the lease on December 31, 20x1? O a. 172,342; 462,098 O b. 167,608, 502,098 O c. 176,904; 542,098 Od 167,608; 643,224Step by Step Solution
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