Business, 12.05.2021 08:40 batmanmarie2004

Anumpa Ltd leased an item of Machinery from Imlie Ltd for a period of five years. The Machinery has a useful life of 12 years. There is no purchase option available at the end of the
lease term.
The monthly rental lease payment is $90,000 over the next five years.
The following are additional details pertaining to the lease agreement:
Rent in advance $2,000
Term in years 5
Interest rate implicit 6%
Fair value of leased assets $5,500,000
PV of Lease Payments $4,500,000
Total lease payments ?
Required:
a) Calculate the total lease payments. (2 marks)
b) Classify the lease under IAS 17. Provide reasons (show calculations) to support your
answer. (5 marks)
c) How would the current lease be recognized under IFRS 16? (5 marks)
d) Prepare a lease schedule and provide journal entries in the books of Anumpa Ltd for the
first 3 years of lease agreement. (18 marks)
Assume interest expense for the five years are calculated as follows:
Year Interest Expense
1 $420,000
2 $212,000
3 $188,000
4 $48,000
5 $32,00

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:00

Which of the following is a reason why it is important for students to study strategy and the strategic management process? answers: studying strategy and the strategic management process can give students tools to evaluate the strategies of firms that may employ them.it can be very important to a new hire's career success to understand the strategies of the firm that hired them and their place in implementing these strategies.while strategic choices are generally limited to very experienced senior managers in large organizations, in smaller and entrepreneurial firms many employees end up being involved in the strategic management process.all of these.

Answers: 3

Answer

Business, 22.06.2019 10:00

In a chapter 7 bankruptcy, a debtor:

Answers: 2

Answer

Business, 22.06.2019 18:30

Order these statements in the correct order to fill in the central idea and key points for a chronological speech. question 22 options: there are several steps that someone must take to become a doctor. finally, you will need to get a medical license, and become board certified in your specialty area. then, you must get admitted into to medical school and earn a medical degree. next, you will need to complete a residency. first you must earn a bachelors degree.

Answers: 2

Answer

Business, 22.06.2019 20:00

After testing its water, a city water department issues a report to the related citizens, noting what chemicals have been identified, their doses, and the estimated risks of exposure at these levels. this report represents a type of

Answers: 1

Answer

You know the right answer?

Anumpa Ltd leased an item of Machinery from Imlie Ltd for a period of five years. The Machinery has...

Questions