cutiepie Company leased a warehouse from cheescake Company on December 31, 2020. The lease term is for 3 years. The implicit interest rate is 11%. The lease payment is P100,000 payable at the end of each year. The payments are variable upon the consumer price index outstanding at the beginning of each period. The consumer price index oustanding (in millions of PHP) and related incremental borrowing rate at each date are as follows: December 31, 2020 – P100.00 and 12% January 1, 2021 – P100.00 and 12% January 1, 2022 – P98.00 and 13% January 1, 2023 – P105.00 and 9% The carrying value of the lease liability as of December 31, 2022 is?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
cutiepie Company leased a warehouse from cheescake Company on December 31, 2020. The lease term is for 3 years. The implicit interest rate is 11%. The lease payment is P100,000 payable at the end of each year. The payments are variable upon the consumer price index outstanding at the beginning of each period. The consumer price index oustanding (in millions of PHP) and related incremental borrowing rate at each date are as follows: December 31, 2020 – P100.00 and 12% January 1, 2021 – P100.00 and 12% January 1, 2022 – P98.00 and 13% January 1, 2023 – P105.00 and 9%
The carrying value of the lease liability as of December 31, 2022 is?
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