What is the balance of lease liability on december

Reference no: EM132784838

Problem 1: Live Company entered into a lease agreement for the use of a new machine on January 1, 2020. The lease agreement requires an annual payment of P1,500,000 for five years starting December 31, 2020. Live guaranteed a residual value of P711,090 at the end of the contract. The machine will revert to the lessor at the end of five years. The machine has an economic life of 10 years. The implicit rate for this lease is 16% where the present value of 1 for five periods is 0.4761 and the present value of an ordinary annuity of 1 is 3.2743. What is the balance of lease liability on December 31, 2020?

Reference no: EM132784838

Questions Cloud

What is the amount of lease liability on januar : The present value of an ordinary annuity of 1 at 8% for 3 periods is 2.5771. What is the amount of lease liability on January 1, 2020?

Should this person open a new credit card : Should this person open a new credit card? Why or why not? You may not just say yes or no. You have to explain why or why not

What amount should be credited to share premium : The share dividend was distributed on March 25 when the market price was P16 per share. What amount should be credited to share premium for the share dividend?

When are vpns used today : When are VPN's used today? Do you use a corporate or individual VPN? If so what are the benefits? Be sure to find at least one article (academic or business).

What is the balance of lease liability on december : What is the balance of lease liability on December 31, 2020? Live Company entered into a lease agreement for the use of a new machine on January 1, 2020.

What amount be reported as unearned revenue on december : What amount should be reported as Unearned Revenue on December 31, 2019, following the ruling by the Department of Trade and Industry

How much is the current tax expense : For tax purposes, the depreciation for this machine is P600,000. The tax rate is 30% for 2019. How much is the current tax expense for 2019?

Calculate average length of stay for Okaloosa Osteopathic : Calculate average length of stay for Okaloosa Osteopathic Hospital, given the following data: Inpatient days = 19882 and Licensed beds = 23

What is the total financial revenue to be recognized : The present value of an ordinary annuity of 1 at 11% for 10 years is 5.889. What is the total financial revenue to be recognized over the lease term?

User Account

All Pages