On January 1, 20x1, Cersei Co. leased a piece of equipment to Tyrion, Inc. Information on...

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On January 1, 20x1, Cersei Co. leased a piece of equipment to Tyrion, Inc. Information on the lease is shown below. Cost of equipment Useful life of equipment Lease term Annual rent payable at the end of each year P1,200,000 5 years 4 years ? Cersei Co. incurred direct costs of P80,000 in negotiating the lease. If Cersei Co. desires a fair rate of return of 10%, what amount of annual rental should it charge Tyrion, Inc.? On January 1, 20x1, Cersei Co. leased a piece of equipment to Tyrion, Inc. Information on the lease is shown below. Cost of equipment Useful life of equipment Lease term Annual rent payable at the end of each year P1,200,000 5 years 4 years ? Cersei Co. incurred direct costs of P80,000 in negotiating the lease. If Cersei Co. desires a fair rate of return of 10%, what amount of annual rental should it charge Tyrion, Inc.?

Answer rating: 100% (QA)

To calculate the annual rental amount Cersei Co should charge Tyrion Inc we need to consider the cos... View the full answer