On December 31, 2020, Pal sold to Air Philippines an airplane with an estimated life of...
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On December 31, 2020, Pal sold to Air Philippines an airplane with an estimated life of 10 years. At the same time, PAL leased back the airplane for three years. Additional information is as follows: Selling price Carrying value at date of sale Monthly rental under lease Implicit rate in the lease computed by Air Phils. 30,000,000 10,000,000 800,000 known to PAL 12% Present value of operating lease 800,000 for 36 months at 12% The leaseback is considered as operating lease 24,085,600 Required: 6. In PAL's December 31, 2020 income statement what amount should be included as realized gain on this transaction? On December 31, 2020, Pal sold to Air Philippines an airplane with an estimated life of 10 years. At the same time, PAL leased back the airplane for three years. Additional information is as follows: Selling price Carrying value at date of sale Monthly rental under lease Implicit rate in the lease computed by Air Phils. 30,000,000 10,000,000 800,000 known to PAL 12% Present value of operating lease 800,000 for 36 months at 12% The leaseback is considered as operating lease 24,085,600 Required: 6. In PAL's December 31, 2020 income statement what amount should be included as realized gain on this transaction?
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PROFIT ON SALE OF AIRPLANE AT THE COMMENCMENT DATE SELLER LESSEE ACCOUNTS FOR THE TRANSICTION AS ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
Posted Date:
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