These amounts have both been recognised as revenue on the basis that this is effectively lease income. Is this correct? Explain with calculations
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Please Show each and every Calculation:
we have leased a fleet of 15 motorbikes to a customer - Xander Plc over a three year term. There was an initial upfront payment of £100,000. Annual lease payments are receivable in arrears on 30 September each year. The normal selling price of the whole fleet of bikes is £1.8 million. After the 3 year lease term is complete, the customer has the option to pay a fixed amount and take legal ownership of the fleet but until then, JJ Victory retains legal title. We have received the upfront payment of £100,000 and the first of the lease payments on 30 September 2021. These amounts have both been recognised as revenue on the basis that this is effectively lease income.
Is this correct? Explain with calculations
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- Shamma approaches Al-Meezan Islamic Bank to lease a car using an Ijara waIqtina contract ending in the ownership transferring to Shamma. The price of thecar is AED100,000. The lease period is 4 years, during which 40% of the value ofthe asset will be used up. The bank wants a profit rate of 7% in the lease contract.Calculate the monthly lease payment for the customer.Multi Line Text.SportZ has negotiated a loan of $25 000 with interest at 7.6% per annum, to be paid as month-end payments of $2200.00 over the next year. Construct a loan amortization schedule to answer the following questions. i. How much interest is paid over the first two months? ii. How much of the principal is paid by the end of the first two months? iti. How much interest is paid over the term of the loan? iv. What is the amount of the final payment?]On January 1, 2022, Anderson Company purchased a machine with a cost of $14,409.50. To complete the purchase, Anderson signs a note specifying monthly payments of $600 beginning one month from the purchase date. The interest rate is 18% compounded monthly. How many payments will Anderson make for this loan? What is the total amount of interest that Anderson will pay over the life of this loan?