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Help me how they obtain the answer above please THanks 57. Kingslake Ltd signed a non-cancellable lease contract on 1 January 2012 for a machine
Help me how they obtain the answer above please
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57. Kingslake Ltd signed a non-cancellable lease contract on 1 January 2012 for a machine that requires 5 annual payments of $200 000 at the start of each year. On the last annual payment, ownership will transfer from the lessor to Kingslake Ltd. The fair value of the asset if paid in cash is $75 964.The following information is also available: Period 1 2 Present value of an annuity of $1 10% 12 0.9091 0.8929 1.7355 1.6091 2.4869 2.4018 3.1699 3.0373 3.7908 3.6548 16 0.8621 1.6052 2.2459 2.7982 3.2743 3 4 5 What is the implicit rate of this lease arrangement in accordance with AASB 117? A. 10% B. 12% C. 16% D. Between 10% and 12%Step by Step Solution
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