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which answer is correct and please explain .. On 1 January 2018, a company which prepares accounts to 31 December acquires an item of equipment
which answer is correct and please explain .. On 1 January 2018, a company which prepares accounts to 31 December acquires an item of equipment on a finance lease. The fair value of the equipment on 1 January 2018 is 40,000 and the company is required to make four lease payments of 13,308 which fall due on 31 December 2018, 2019, 2020 and 2021. The rate of interest implicit in the lease is 12.5% p.a. The company applies IAS17 throughout. The finance charge allocated to the first year under the actuarial method is: Select one: a. 13,308 b. 5,000 c. 5,293 d. 31,692
which answer is correct and please explain ..
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