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Question - At 1 January 2015 Bridge Finance plc agreed to finance the lease of machinery costing $37,200 to Rapid Growth plc at a lease cost of $10,000 per annum payable at the end of the year, namely 31 December. The period of the lease is five years. Bridge Finance plc incurred direct costs of $708 in setting up the contract.
Required - Show for Bridge Finance plc the amount that would be charged to the statement of comprehensive income for the year ending 31 December 2017 and the amount of the leased asset that would appear in the statement of financial position at that date.
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