How much is the interest expense recognized in profit or loss for the year 2021? For numbers 6 to 10, please refer to the following problem: On January 1, 2021, DIXIE KONG Corp. leased six computers for use of Accountancy Department. The lease period is five years, and the estimated economic life of the leased property is six years. The lease does not contain automatic title transfer and purchase option. Annal lease payments are payable in advance every January 1 in the amount of P90,000. The incremental borrowing rate for DIXIE KONG Corp. is 12% and the implicit rate known to DIXIE KONG is 10%. The company uses straight-line depreciation for this type of asset. Round off PV factors to two decimal places. a. 28,530 b. 37,530 с. 34,110
How much is the interest expense recognized in profit or loss for the year 2021? For numbers 6 to 10, please refer to the following problem: On January 1, 2021, DIXIE KONG Corp. leased six computers for use of Accountancy Department. The lease period is five years, and the estimated economic life of the leased property is six years. The lease does not contain automatic title transfer and purchase option. Annal lease payments are payable in advance every January 1 in the amount of P90,000. The incremental borrowing rate for DIXIE KONG Corp. is 12% and the implicit rate known to DIXIE KONG is 10%. The company uses straight-line depreciation for this type of asset. Round off PV factors to two decimal places. a. 28,530 b. 37,530 с. 34,110
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 1E: Determining Type of Lease and Subsequent Accounting On January 1, 2019, Caswell Company signs a...
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