Question
On 1 July 2012, Ismail Ltd leased a crane from Pasha Ltd. The crane cost Pasha Ltd OMR120,307, considered to be its fair value on
- On 1 July 2012, Ismail Ltd leased a crane from Pasha Ltd. The crane cost Pasha Ltd OMR120,307, considered to be its fair value on the same day. The finance lease agreement contained the following provisions:
| The lease term is for 3 years, starting on | 1 July 2012 |
| The lease is non-cancellable |
|
| Annual lease payment, payable on 30 June each year | OMR39,000 |
| Estimated useful life of crane | 4 years |
| Estimated residual value of crane at the end of lease term | OMR22,000 |
| Residual value guaranteed by Ismail Ltd | OMR16,000 |
| Interest rate implicit in the lease | 7% |
| The lease was classified as a finance lease by both the parties at 1 July 2012. |
|
Required:
- Prepare a schedule summarising the lease payments to be made over the term of the lease (4 marks)
- Prepare a schedule summarising the minimum lease receipts over the term of the lease.
- Does the PV of MLP represent substantially the FV of the asset?
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Crash Course Medical Research Audit And Teaching The Essentials For Career Success
Authors: Amit Kaura MSc BSc MB ChB MRCP AFHEA AMInstLM, Darrel Francis, Shreelata T Datta MD MRCOG LLM MBBS BSc, Philip Xiu MA MB BChir MRCP MRCGP MScClinEd FHEA MAcadMEd RCPathME
2nd Edition
0702073784, 978-0702073786
