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IFRS 16 (LEASES) At the beginning of the year 2023, WOW Company leased out one of its inventory items for eight years, which is equal
IFRS 16 (LEASES)
At the beginning of the year 2023, WOW Company leased out one of its inventory items for eight years, which is equal to that item's economic life. Lease payments of $1,600,000 are due every January 1 of each year, starting in 2023. Production costs for each item amounted to $6,500,000. Initial implicit rate was 9%. In addition. lot al direct costs amounted to $277,468, which when considered, will decrease the implicit rate to 8%
- The amount of net income for the year 2023 shall be
- $3,152,725
- $3,887,470
- $3,600,002
- $4,096,607
- The amount of the lease receivable as of December 31, 2024 shall be
- $12,800,000
- $9,600,000
- $11,200,000
- $8,000,000
- The balance in the net investment in the lease as of December 31, 2024 shall be
- $8,777,470
- $7,823,442
- $8,052,725
- $7,177,470
PLEASE DO NOT USE AI OR CHATGPT, THIS IS A VERY TECHNICAL SUBJECT. THANKS
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