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Q. 3 ABC Ltd has acquired an asset cost Rs. 440,000 under Finance Lease on 1-1-2018. The least term is of five years at
Q. 3 ABC Ltd has acquired an asset cost Rs. 440,000 under Finance Lease on 1-1-2018. The least term is of five years at an annual rental of Rs. 100,000 payable at the start of each year. The residual value at the end of lease is Nil. The implicit rate of interest is 10%. Required: i. Gross Investment in Lease ii. Net investment in lease iii. Unearned Finance Income iv. Lease amortization schedule
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College Accounting
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
11th edition
978-1111528300, 1111528128, 1111528306, 978-1111528126
