of the asset under the lease estimated to be P1,200,000 on financing lease. A third party...
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of the asset under the lease estimated to be P1,200,000 on financing lease. A third party guaranteed the residual value On January 1, 2020, Lyle Company entered into a direct January 1, 2025, the end of the lease term. Annual lease payments are P1,000,000 due each December 31, beginning December 31, 2020. The last payment is due December 31, 2024. The remaining useful life of the asset was six years at the commencement of the lease. The lessor used 10% as the implicit interest rate. The PV of lat 10% for 5 periods is .62, and the PV of an ordinary annuity f1 at 10% for 5 periods is 3.79. What is the net lease receivable of the lessor at the commencement of the lease? a. 4,534,000 b. 3,790,000 c. 4,990,000 d. 2,590,000 2 What is the gross investment in the lease? a. 5,000,000 b. 6,200,000 c. 3,800,000 d. 5,744,000 3. What is the total unearned interest income? a. 2,410,000 b. 1,666,000 C. 1,210,000 d. 466,000 4. What is the interest income for 2020? a. 379,000 b. 620,000 C 453,400 d. 500 000 of the asset under the lease estimated to be P1,200,000 on financing lease. A third party guaranteed the residual value On January 1, 2020, Lyle Company entered into a direct January 1, 2025, the end of the lease term. Annual lease payments are P1,000,000 due each December 31, beginning December 31, 2020. The last payment is due December 31, 2024. The remaining useful life of the asset was six years at the commencement of the lease. The lessor used 10% as the implicit interest rate. The PV of lat 10% for 5 periods is .62, and the PV of an ordinary annuity f1 at 10% for 5 periods is 3.79. What is the net lease receivable of the lessor at the commencement of the lease? a. 4,534,000 b. 3,790,000 c. 4,990,000 d. 2,590,000 2 What is the gross investment in the lease? a. 5,000,000 b. 6,200,000 c. 3,800,000 d. 5,744,000 3. What is the total unearned interest income? a. 2,410,000 b. 1,666,000 C. 1,210,000 d. 466,000 4. What is the interest income for 2020? a. 379,000 b. 620,000 C 453,400 d. 500 000
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Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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