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The equipment will revert to Mindoro at the end of the lease term and its unguaranteed residual value is P1,000,000 with a present value of
The equipment will revert to Mindoro at the end of the lease term and its unguaranteed residual value is P1,000,000 with a present value of P386,000. Mindoro incurred direct costs of P250,000 in negotiating the lease. The finance lease is appropriately recorded as a sales type lease.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
10th Canadian Edition Volume 2
1118300858, 978-1118300855
