How much should Thelma report as net investment in lease on December 31, 2022 statement of financial position? a. P 291,049b. P 320,154c. P 321, 049d. P 331, 049 please explain the answer and provide the solution in good accounting form. MC41 On January 1, 2022, Thelma Industries leased equipment toTrician Company for a four-year period ending December 31,The equipment cost Thelma P300,000 and has anAnnual payments areThe2025.expected useful life of five years.P118,951, .which includes P10,000 executory costs.equipment's fair value is P400,000. The lessee guarantees theresidual value of P80,000. Lease payment is due everyDecember 311 and Trician made the first payment on December31, 2022. Trician's implicit interest rate is 10%.Thelma incurred P15,000 costs to consummate the leasecontract. ,Present value of 1 'discounted at 10% for 4 periods is 0.68301.Present value of annuity due of 1 for 4 periods discounted at10% is 3.48685.Present value of ordinary annuity of 1 at 10% for 4 periods is3.16987.

The net investment in the lease is the total amount of lease to be received by the lessor. It is…

Answered: MC41 On January 1, 2022, Thelma…

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 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...

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How much should Thelma report as net investment in lease on December 31, 2022 statement of financial position?

a. P 291,049

b. P 320,154

c. P 321, 049

d. P 331, 049

please explain the answer and provide the solution in good accounting form.

MC41 On January 1, 2022, Thelma Industries leased equipment to
Trician Company for a four-year period ending December 31,
The equipment cost Thelma P300,000 and has an
Annual payments are
The
2025.
expected useful life of five years.
P118,951, .which includes P10,000 executory costs.
equipment's fair value is P400,000. The lessee guarantees the
residual value of P80,000. Lease payment is due every
December 311 and Trician made the first payment on December
31, 2022. Trician's implicit interest rate is 10%.
Thelma incurred P15,000 costs to consummate the lease
contract. ,
Present value of 1 'discounted at 10% for 4 periods is 0.68301.
Present value of annuity due of 1 for 4 periods discounted at
10% is 3.48685.
Present value of ordinary annuity of 1 at 10% for 4 periods is
3.16987.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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