Taunt To JEER AT CO leased a new machine from ridicule to mock, Inc on January...
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Taunt To JEER AT CO leased a new machine from ridicule to mock, Inc on January 1, 2001, under a lease with the following information: Lease term: 10years Annual rent payable at the end of each year P80,000 Useful life of machine 12years Implicit interest rate 14% Lessee's incremental borrowing rate 12% The annual rental payment includes P6,000 to cover maintenance costs The maintenance costs transfer services to TAUNT The amount charged reflects the stand alone selling price of the maintenance services Requirements: A Provide the entries in 2001 and 2002 B Determine the current and noncurrent portions of the lease liability on December 31, 2001 Taunt To JEER AT CO leased a new machine from ridicule to mock, Inc on January 1, 2001, under a lease with the following information: Lease term: 10years Annual rent payable at the end of each year P80,000 Useful life of machine 12years Implicit interest rate 14% Lessee's incremental borrowing rate 12% The annual rental payment includes P6,000 to cover maintenance costs The maintenance costs transfer services to TAUNT The amount charged reflects the stand alone selling price of the maintenance services Requirements: A Provide the entries in 2001 and 2002 B Determine the current and noncurrent portions of the lease liability on December 31, 2001
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Answer rating: 100% (QA)
1 Jan 1 2021 Dr Asset 385993 Cr Lease liability 385993 Dec 31 2021 Dr Interest expense 54039 385 99... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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