In: Accounting
Question-1: Marks-05
GIVEN:
Lease term 5 Years
Fair value of assets Rs. 180,000
Annual rental payments (beginnings) Rs. 35,927.39
Interest rate implicit in the lease 10%
Economic life 8 Years
Residual value Rs. 20,000
Required:
Identify type of lease if
a) Residual value is guaranteed b) Residual value is un
guaranteed