Question
Classic Malibu Ltd decides to lease some machinery from Noosaville Ltd on the following terms: Date of entering lease: 1 July 2023. Duration of lease:
Classic Malibu Ltd decides to lease some machinery from Noosaville Ltd on the following terms:
Date of entering lease: 1 July 2023.
Duration of lease: 10 years.
Life of leased asset: 10 years.
Unguaranteed residual value: $15 000.
Lease payments: $10 000 at lease inception, $12 000 on 30 June each year for the next 10 years.
Fair value of leased asset at date of lease inception: $97 469.
REQUIRED Determine the interest rate implicit in the lease.
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Internal Auditing Assurance & Advisory Services
Authors: Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Cris Riddle, Mark Salamasick, Paul J. Sobel
4th Edition
0894139878, 978-0894139871
