On December 31, 2019, Sin Company signed a five-year, non-cancelable lease for a machine with Hyundai Company. The terms of the lease called for Sin Company to make annual payments of P80,000 in advance starting on December 31, 2019 and every December 31 thereafter. The machine has an estimated useful life of six years and a P40,000 unguaranteed residual value at the end of the five-year lease term. The machine reverts back to the lessor at the end of the five-year lease term.Sin Company uses the straight-line method of depreciation for all of its depreciable assets.The rate implicit in this contract, which is know to Sin, is 12%. The market value of the machine is P340,000. (Use three decimal places for the factors). What is the carrying amount of the right-of-use asset at December 31, 2020? A. P258,368 B.P266,368 C.P269,133 D.P284,512 What are the balances of lease liability at December 31, 2019 and December 31, 2020, respectively? A. P242,960 and P192,115 B.P265,640 and P217,517 C. P242,960 and P162,960 D.P265,640 and P185,640
On December 31, 2019, Sin Company signed a five-year, non-cancelable lease for a machine with Hyundai Company. The terms of the lease called for Sin Company to make annual payments of P80,000 in advance starting on December 31, 2019 and every December 31 thereafter. The machine has an estimated useful life of six years and a P40,000 unguaranteed residual value at the end of the five-year lease term. The machine reverts back to the lessor at the end of the five-year lease term.Sin Company uses the straight-line method of
What is the carrying amount of the right-of-use asset at December 31, 2020?
A. P258,368
B.P266,368
C.P269,133
D.P284,512
What are the balances of lease liability at December 31, 2019 and December 31, 2020, respectively?
A. P242,960 and P192,115
B.P265,640 and P217,517
C. P242,960 and P162,960
D.P265,640 and P185,640
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