Question: I need the answer as soon as possible Jhang Construction enters into a 6 year lease of a machine on 1 January Year 1. The

I need the answer as soon as possible

Jhang Construction enters into a 6 year lease of a machine on 1 January Year 1. The fair value of the machine at the commencement of the lease was Rs. 80,000 and Jhang Construction incurred initial direct costs of Rs. 2,000 when arranging the lease. The annual lease payments are Rs. 18,000, payable at the end of each year. The estimated residual value of the asset at the end of the lease is Rs. 8,000 and Jhang Construction has guaranteed this amount. The interest rate implicit in the lease is 11.176751%. Jhang Construction enters into a 6 year lease of a machine on 1 January Year 1. The fair value of the machine at the commencement of the lease was Rs. 80,000 and Jhang Construction incurred initial direct costs of Rs. 2,000 when arranging the lease. The annual lease payments are Rs. 18,000, payable at the end of each year. The estimated residual value of the asset at the end of the lease is Rs. 8,000 and Jhang Construction has guaranteed this amount. The interest rate implicit in the lease is 11.176751%

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