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What would be the current liability for the leased plant

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Question - On 1 January, Fresco acquired an item of plant under a five-year lease agreement. The agreement had an implicit interest rate of 10% and required annual rentals of $6 million to be paid on 31 December each year for five years. The present value of the annual rental payments was $23 million. What would be the current liability for the leased plant in Fresco's statement of financial position as at 31 December 2020?

Reference no: EM132571662

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