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The company leased a warehouse on January 1, 2019 with the following information: Annual fixed payment paid at the end of the year Cost
The company leased a warehouse on January 1, 2019 with the following information: Annual fixed payment paid at the end of the year Cost of restoring the asset required by the contract Payment to lessor to obtain the lease Unguaranteed residual value Annual executory cost Lease tern Useful life of the asset Implicit interest rate P600,000 400,000 224,000 200,000 50,000 6 years 8 years 10% a. Compute for the lease liability and right-of-use asset. b. Prepare the amortization table. c. Prepare the necessary entry in the first year and the final year.
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To solve this problem we need to follow the steps for accounting for a lease under IFRS 16 Leases Gi...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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