Question
On January 1, 2020, ABC Company leased to DEF Company a Machinery in a Sales Type Lease with the following details: Annual Rental payable at
On January 1, 2020, ABC Company leased to DEF Company a Machinery in a Sales Type Lease with the following details:
Annual Rental payable at the end of each year 600,000
Lease Term and Useful Life 5 years
Cost of Machinery 750,000
Implicit Interest Rate 12%
Payment starts on December 31, 2020
- How much is the Financial Revenue of the Sales Type Lease?
- How much is the Gross Profit of the Sales Type Lease?
- How much is the Carrying Amount of the Lease as of December 31, 2021?
- How much is the Interest Income for 2021?
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
