Assignment Detail

Tutors

How much is the net investment in the lease at december

    Assignment Instructions

    Assignment ID: FG133134494

    Question 1 – On December 31, 2022, Sarma Company leased equipment to Shane Company for a four-year period ending December 31, 2026. The equipment cost Sama 365,760 and has an expected useful life of five years. Its normal sales price is P365,760. The lessee guarantees the residual value of P80,000. Lease payments is due every December 31 and Shane Company made the first payment on December 31, 2022. Sarma’s implicit interest rate is 10%. How much interest revenue should Sama recognize over the four-year lease term?

    Question 2 – On December 31, 2022, Sarma Company leased equipment to Shane Company for a four-year period ending December 31, 2026. The equipment cost Sara 365,760 and has an expected useful life of five years. Its normal sales price is P365,760. The lessee guarantees the residual value of P80,000. Lease payments is due every December 31 and Shane Company made the first payment on December 31, 2022. Sarma’s implicit interest rate is 10%. How much is the net investment in the lease at December 31, 2022?

    Need fresh solution to this Assignment without plagiarism?? Get Quote Now

    Expert Answer

    Asked by: Anonymous
    Plagiarism Checked
    Answer Rating:
    4.6/5

    Plagiarism free Answer files are strictly restricted for download to the student who originally posted this question.

    Related Assignments

    //
    Our customer support team is here to answer your questions. You can send Assignments directly to support team.
    👋 Hi, how can I help?