Question
Norie Company leased an asset on a finance lease. The present value of the lease payments total P686,000 and the fair value of the asset
Norie Company leased an asset on a finance lease. The present value of
the lease payments total P686,000 and the fair value of the asset is
P750,000. The asset has a useful life of 5 years and the lease term is 4
years. The bargain purchase option for the asset at the end of its useful
life is nominal and is substantially lower than the value of the asset at that
date. Depreciation for the asset is computed using straight line method.
How much is the annual depreciation for the asset?
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MIS Management Information Systems
Authors: Hossein Bidgoli
8th edition
978-1337406932, 1337406937, 978-1337406925, 1337406929, 978-0357004357
