On 1 January 20X6 Fellini hired a machine under a finance lease. The cash price of the
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- On 1 January 20X6 Fellini hired a machine under a finance lease. The cash price of the machine was $3.5 million and the present value of the minimum lease payments was $3.3 million. Instalments of $700,000 are payable annually in advance with the first payment made on 1 January 20X6. The interest rate implicit in the lease is 6%.
- What amount will appear under non-current liabilities in respect of this lease in the statement of financial position of Fellini at 31 December 20X7?
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date: