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What will be the amount of the finance charge arising

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Reference no: EM132531720

On 1 January 2019 Platinum Ltd entered a lease agreement. the initial lease liability was $ 360 200 and a deposit of $ 120 000 was payable on 1 January 2019 with 3 further installments of $ 100 000 payable on 31 December 2019, 31 December 2020 and 31 December 2021. The rate implicit is 12%.

Question 1: What will be the amount of the finance charge arising from this lease which will be charged to statement of profit or loss account?

Reference no: EM132531720

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