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What total amount of income must be presented in the profit or loss section of the statement of comprehensive income for the year 2020? Jayleen
What total amount of income must be presented in the profit or loss section of the statement of comprehensive income for the year 2020?
Jayleen Company is a dealer in equipment. On January 1,2019, an equipment was leased to another entity with the following provisions: Annual rental payable at the end of each year 1,500,000 Lease term 5 years Cost of equipment 4,000,000 Fair value of equipment 6,000,000 Guaranteed residual value 500,000 Implicit interest rate 12% PV of an ordinary annuity of 1 for 5 periods at 12% 3.60 Present value of 1 for 5 periods at 12% 0.57 At the end of the lease term, the equipment will revert to the lessor. On such date, the fair value of the asset is P 350,000. The perpetual inventory system is used. P 2,269,064 P 4,000,000 P 584,064 P 2,367,200
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