Business, 16.05.2021 07:40 aryal191

Anumpa Ltd leased an item of Machinery from Imlie Ltd for a period of five years. The Machinery has a useful life of 12 years. There is no purchase option available at the end of the lease term. The monthly rental lease payment is $90,000 over the next five years. The following are additional details pertaining to the lease agreement: Rent in advance $2,000 Term in years 5 Interest rate implicit 6% Fair value of leased assets $5,500,000 PV of Lease Payments $4,500,000 Total lease payments ? Required: a) Calculate the total lease payments. (2 marks) b) Classify the lease under IAS 17. Provide reasons (show calculations) to support your answer. (5 marks) c) How would the current lease be recognized under IFRS 16? (5 marks) d) Prepare a lease schedule and provide journal entries in the books of Anumpa Ltd for the first 3 years of lease agreement. (18 marks) Assume interest expense for the five years are calculated as follows: Year Interest Expense 1 $420,000 2 $212,000 3 $188,000 4 $48,000 5

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:30

Which of the following statements is correct? a) one drawback of forming a corporation is that it generally subjects the firm to additional regulationsb) one drawback of forming a corporation is that it subjects the firms investors to increased personal liabilitiesc) one drawback of forming a corporation is that it makes it more difficult for the firm to raise capitald) one advantage of forming a corporation is that it subjects the firm's investors to fewer taxese) one disadvantage of forming a corporation is that it is more difficult for the firm's investors to transfer their ownership interests

Answers: 1

Answer

Business, 21.06.2019 22:20

Outstanding stock consists of 8,300 shares of cumulative 7% preferred stock with a $10 par value and 4,300 shares of common stock with a $1 par value. during the first three years of operation, the corporation declared and paid the following total cash dividends. year dividend declared 2016 $ 0 2017 $ 7,300 2018 $ 45,000 the amount of dividends paid to preferred and common shareholders in 2018 is:

Answers: 2

Answer

Business, 21.06.2019 23:10

Kando company incurs a $9 per unit cost for product a, which it currently manufactures and sells for $13.50 per unit. instead of manufacturing and selling this product, the company can purchase product b for $5 per unit and sell it for $12 per unit. if it does so, unit sales would remain unchanged and $5 of the $9 per unit costs assigned to product a would be eliminated. 1. prepare incremental cost analysis. should the company continue to manufacture product a or purchase product b for resale? (round your answers to 2 decimal places.)

Answers: 1

Answer

Business, 22.06.2019 10:00

What is the difference between an "i" statement and a "you" statement? a. the "i" statement is non-confrontational b. the "you" statement is non-confrontational c. the "i" statement is argumentative d. the "you" statement is neutral in tone select the best answer from the choices provided

Answers: 1

Answer

You know the right answer?

Anumpa Ltd leased an item of Machinery from Imlie Ltd for a period of five years. The Machinery has...

Questions