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THTRS QUESTION 2 Mpali plc is in business of leasing out machines. On 1 January 2018 Nguzu plc leased a machine from Mpali plc. The following are the terms and conditions under which the machine was leased: 1. Inception of lease 1 January 2018. 2. Lease term was for 5 years at K35,061,000 per annum payable in arrears. 5 3. The fair value of the asset was K140.000.000 4. The useful life of the asset was five years The present value of K1,000 per annum, receivable or payable at the end of each year for n years is as follows: THTRS QUESTION 2 Mpali plc is in business of leasing out machines. On 1 January 2018 Nguzu plc leased a machine from Mpali plc. The following are the terms and conditions under which the machine was leased: 1. Inception of lease 1 January 2018. 2. Lease term was for 5 years at K35,061,000 per annum payable in arrears. 5 3. The fair value of the asset was K140.000.000 4. The useful life of the asset was five years The present value of K1,000 per annum, receivable or payable at the end of each year for n years is as follows