Question
Fitbit Ltd has leased a machine on the following terms: Date of entering lease 1 July 2019 Duration of lease 5 years Life of asset
Fitbit Ltd has leased a machine on the following terms:
Date of entering lease 1 July 2019
Duration of lease 5 years
Life of asset 6 years
Unguaranteed residual value $40,000
Lease payments inception (at the start) $60,000
Annual payments (5) $65,000
Implied rate 11.0 %
Required: Determine the Fair Value (rounded off) of the leased asset.
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Financial Accounting IFRS
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
2nd edition
1118285909, 1118285905, 978-1118285909
