The following are characteristics of a lease entered into on January 1, 2020: Price of leased asset
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Question:
The following are characteristics of a lease entered into on January 1, 2020:
| Price of leased asset from manufacturer | 312,094 |
| Lease payments | 100,000 |
| Lease term | 4 years |
| Lease frequency | Annual |
| Payment timing | End of year |
| Guaranteed residual value | 35,000 |
| Expected payout under residual value guarantee | 35,000 |
| Interest rate implicit in the lease agreement | 14% |
Required:
What is the amount of finance income recorded by the lessor in 2020?
Expert Answer:
Related Book For 
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
