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What amount shall marina sands report for the equipment

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Reference no: EM132575467

Technocraft Company sells audio systems. It leases to Marina Sands Company on January 1, 2015 an audio equipment with carrying value of P9, 000,000, under the following terms:

Guaranteed residual value of P2, 000,000 at the end of the lease term of 5 years.

Periodic payment every January 1 and July 1 of P1, 328,622 start on January 1, 2015.

Lessor's annual implicit interest rate, which is known by Marina Sands is 10%.

Technocraft incurs commission and other costs related to the lease amounting to P100,000.

REQUIRED:

Question (a) How much total profit should Technocraft recorgnize for the year ended December 31,2015?

Question (b) How much interest expense shall Marina Sands recognize for the year ended December 31,2015?

Question (c) What amount shall Marina Sands report for the equipment at December 31, 2016?

Question (d) What amount of interest revenue should Technocraft report for the year ended December 31, 2016?

Question (e) What amount of Finance Lease Receivable,net shall Technocraft report in Non-current asset portion at December 31, 2015?

Reference no: EM132575467

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