Question
Equity limited leased an asset from Nairobi company on the following terms. 1. annual installment payments amount to ksh 54,000 inclusive of executory cost of
Equity limited leased an asset from Nairobi company on the following terms. 1. annual installment payments amount to ksh 54,000 inclusive of executory cost of ksh4,000. 2. The implicit interest rate is 12%. 3. The primary lease period is 5 years as well as the useful life of the assets. Required a) Lease amortization schedule using actuarial method assuming. 1.Lease payment paid at the beginning of the year( Annuity due). 2. Lease payment at the end of the year (ordinary unity)Equity limited leased an asset from Nairobi company on the following terms. 1. annual installment payments amount to ksh 54,000 inclusive of executory cost of ksh4,000. 2. The implicit interest rate is 12%. 3. The primary lease period is 5 years as well as the useful life of the assets. Required a) Lease amortization schedule using actuarial method assuming. 1.Lease payment paid at the beginning of the year( Annuity due). 2. Lease payment at the end of the year (ordinary unity)
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