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PROBLEM 2 On January 1, 2020, Lahat Pasado Padin Company leased a Machinery to another entity with the following details, the Lease is treated as
PROBLEM 2
On January 1, 2020, Lahat Pasado Padin Company leased a Machinery to another entity with the following details, the Lease is treated as Direct Financing Lease:
Annual Rental Payable at the end of each yearPhp 400,000
Bargain Purchase Option Php 250,000
Useful Life 5 years
Lease Term 5 years
Interest Rate 8%
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