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What is the total charge profit or loss in respect of lease

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Reference no: EM132531715

Pennyworth Ltd acquired an item of plant under a lease on 1 April 2019. the present value of the future lease payments and the carrying amount of the right of use asset was $ 15 462 000 and 3 rental payments of % 6 000 000 per annum are due to be paid in arrears on 31 March each year. The useful life of the plant is deemed to be 5 years. There is no option to buy the asset at the end of the lease term. The interest rate implicit in the lease is 8% per annum.

Question 1: What is the total charge profit or loss in respect of this lease on 31 March 2020?

Reference no: EM132531715

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