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Barbie has leased an item of the plant under the following terms:
The commencement date of the lease - Jan.1,2019
Term of the lease - 5 yrs
Annual payments in advance - 12,000
Cash price and fair value - 52,000
Implicit rate of 8%
Depreciation policy - 20% per annum
Problem 1: The total lease-related expenses for the fiscal year Sept 30,2020 is
a. 13,072
b. 12,896
c. 10,200
d. 12,272
Unit selling price: $110 Unit Variable Cost: $70 Unit Contribution Margin: $40
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