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I need the answer as soon as possible A company leased an asset to another company on 1 January 20X1 on the following terms. Lease
I need the answer as soon as possible
A company leased an asset to another company on 1 January 20X1 on the following terms. Lease term 4 years Inception of lease 1.1.X1 Annual instalments in advance Rs. 22,000 Rs. 10,000 Residual value of asset as guaranteed by lessee Expected residual value at end of lease Fair value of the asset Initial direct costs incurred by the lessor Interest rate implicit in the lease Rs. 12,000 Rs. 82,966 Rs. 700 11% Requirements a) Calculate the unguaranteed residual value and the net investment in the lease as at 1 January 20X1 b) Prepare extracts from the financial statements of the lessor for the year ended 31.12.X1 (excluding notes)Step by Step Solution
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