Question
The following are characteristics of a lease entered into on January 1, 2020: Price of leased asset from manufacturer 312,094 Lease payments 100,000 Lease term
The following are characteristics of a lease entered into on January 1, 2020:
| Price of leased asset from manufacturer | 312,094 |
| Lease payments | 100,000 |
| Lease term | 4 years |
| Lease frequency | Annual |
| Payment timing | End of year |
| Guaranteed residual value | 35,000 |
| Expected payout under residual value guarantee | 35,000 |
| Interest rate implicit in the lease agreement | 14% |
Required:
What is the amount of finance income recorded by the lessor in 2020?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Humor And Other Oxymorons
Authors: Mr Mike Jacka
1st Edition
0991280903, 978-0991280902
