Jan K Jang. Inc entered into a lease contract on January 1, 2017 with Jude Jar Co. for a 6 year lease of a cold spring with a useful life of 8 years. It was agreed that annual rental payable at the end of each year was Php 1,200,000 Because of the attractiveness of the cold spring, a payment was made by Jan K Jang Inc. to Jude Jar Co. to obtain the long-term lease: Php 200,000 Insurance, maintenance and taxes per year to be paid by Jan K Jang. Php 100,000 Initial direct cost incurred by JK Jang Inc. was Php 248,000 Unguaranteed residual value of the cold spring was Php 400,000 Cost of restoring the cold spring as required in the contract Php 800,000 The lease neither provides a transfer of title to the lessee nor a purchase option. The implicit rate of the lease cannot be determined, but as inquired from Banko de Oro, the same financing can be obtained at the rate of 10% What is the accumulated depreciation on the right of use asset for 2018?
Jan K Jang. Inc entered into a lease contract on January 1, 2017 with Jude Jar Co. for a 6 year lease of a cold spring with a useful life of 8 years. It was agreed that annual rental payable at the end of each year was Php 1,200,000 Because of the attractiveness of the cold spring, a payment was made by Jan K Jang Inc. to Jude Jar Co. to obtain the long-term lease: Php 200,000 Insurance, maintenance and taxes per year to be paid by Jan K Jang. Php 100,000 Initial direct cost incurred by JK Jang Inc. was Php 248,000 Unguaranteed residual value of the cold spring was Php 400,000 Cost of restoring the cold spring as required in the contract Php 800,000 The lease neither provides a transfer of title to the lessee nor a purchase option. The implicit rate of the lease cannot be determined, but as inquired from Banko de Oro, the same financing can be obtained at the rate of 10% What is the accumulated depreciation on the right of use asset for 2018?
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 1P: Determining Type of Lease and Subsequent Accounting On January 1, 2019, Ballieu Company leases...
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Jan K Jang. Inc entered into a lease contract on January 1, 2017 with Jude Jar Co. for a 6 year lease of a cold spring with a useful life of 8 years.
It was agreed that annual rental payable at the end of each year was Php 1,200,000
Because of the attractiveness of the cold spring, a payment was made by Jan K Jang Inc. to Jude Jar Co. to obtain the long-term lease: Php 200,000
Insurance, maintenance and taxes per year to be paid by Jan K Jang. Php 100,000
Initial direct cost incurred by JK Jang Inc. was Php 248,000
Unguaranteed residual value of the cold spring was Php 400,000
Cost of restoring the cold spring as required in the contract
Php 800,000
The lease neither provides a transfer of title to the lessee nor a purchase option.
The implicit rate of the lease cannot be determined, but as inquired from Banko de Oro, the same financing can be obtained at the rate of 10%
What is the accumulated depreciation on the right of use asset for 2018?
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