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please answer 10-11, i need it in 1 hour thank youuuu 2 points 10. On January 1, 2012, Thelma Industries leased equipment to Tricia Company
please answer 10-11, i need it in 1 hour thank youuuu
2 points 10. On January 1, 2012, Thelma Industries leased equipment to Tricia Company for a four-year period ending December 31, 2015. The equipment cost Thelma P300,000 and has an expected useful life of five years. Annual payments are P118,951, including P10,000 executory costs. The equipment's fair value is P400,000. The lessee guarantees the residual value of P80,000. Lease payment is due every December 31 and Tricia made the first payment on December 31, 2012. Thelma incurred P15,000 costs contract. The rate implicit in the lease after adjustments for the costs incurred by Thelma is 10%. Present value of 1 discounted at 10% for 4 periods is 0.68301. Present value of annuity due of 1 for 4 periods discounted at 10% is 3.48685. Present value of ordinary annuity of 1 at 10% for 4 periods is 3.16987. How much profit, inclusive of interest revenue, should Thelma report from this lease for the year ended December 31, 2012? * a. P100,000 O b. P125,000 O c. P140,000 O d. P162,991 11. Glade Company leases computer equipment to customers under direct 2 points financing lease. The equipment has no residual value at the end of the lease and the leases do not contain purchase option. Glade wishes to earn 8% interest on a five-year lease of equipment with a fair value of P323,400. The present value of an annuity due of P1 at 8% for 5 years is 4.312. What is the total amount of interest revenue that Glade will earn over the life of the lease? O a. P51,600 O b. P75,000 c. P129,360 O d. P139,450 Step by Step Solution
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