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Mitchum Ltd Entered into a Lease Agreement on 1 July

Question 57

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Mitchum Ltd entered into a lease agreement on 1 July 2003 to lease equipment on the following terms: Mitchum Ltd entered into a lease agreement on 1 July 2003 to lease equipment on the following terms: The interest rate implicit in the lease is 6 per cent and the fair value of the leased asset is $13,316.The lease is cancellable at the option of the lessee.The economic benefits provided by the lease asset are expected to be consumed evenly over its life.What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2004? A) B) C) D) E) None of the given answers. The interest rate implicit in the lease is 6 per cent and the fair value of the leased asset is $13,316.The lease is cancellable at the option of the lessee.The economic benefits provided by the lease asset are expected to be consumed evenly over its life.What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2004?


A) Mitchum Ltd entered into a lease agreement on 1 July 2003 to lease equipment on the following terms: The interest rate implicit in the lease is 6 per cent and the fair value of the leased asset is $13,316.The lease is cancellable at the option of the lessee.The economic benefits provided by the lease asset are expected to be consumed evenly over its life.What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2004? A) B) C) D) E) None of the given answers.
B) Mitchum Ltd entered into a lease agreement on 1 July 2003 to lease equipment on the following terms: The interest rate implicit in the lease is 6 per cent and the fair value of the leased asset is $13,316.The lease is cancellable at the option of the lessee.The economic benefits provided by the lease asset are expected to be consumed evenly over its life.What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2004? A) B) C) D) E) None of the given answers.
C) Mitchum Ltd entered into a lease agreement on 1 July 2003 to lease equipment on the following terms: The interest rate implicit in the lease is 6 per cent and the fair value of the leased asset is $13,316.The lease is cancellable at the option of the lessee.The economic benefits provided by the lease asset are expected to be consumed evenly over its life.What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2004? A) B) C) D) E) None of the given answers.
D) Mitchum Ltd entered into a lease agreement on 1 July 2003 to lease equipment on the following terms: The interest rate implicit in the lease is 6 per cent and the fair value of the leased asset is $13,316.The lease is cancellable at the option of the lessee.The economic benefits provided by the lease asset are expected to be consumed evenly over its life.What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2004? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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