Question: On January 1, 2019, Lee Company sold a machine and immediately leased it back. The following data pertain to the sale and leaseback transaction: Sale

On January 1, 2019, Lee Company sold a machine and immediately leased it back. The following data pertain to the sale and leaseback transaction: Sale price P5,000,000 Carrying amount of machine 6,500,000 Annual rental payable at the end of each year Lease term 4 years Remaining life of machine 20 years Implicit interest rate 6% PV of an ordinary annuity of 1 at 6% for four periods 3.465 What is the loss on right transferred to the buyer-lessor

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