ents of P1,300,000 beginning January 1, 2019. At the end of the lease term, December 31, 2023, the entity guaranteed the residual value of the automobiles at P1,000,000. The lease qualifies as finance lease. The interest rate implicit in the lease is 9%. Present value factors for the 9% rate implicit in the lease are as follows: For an annuity due with 5 payments (in advance) 4.240 For an ordinary annuity with 5 payments 3.890 Present value of 1 for 5 periods 0.650 What is the finance lease liability immediately after the first

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.