For the following lease,under IFRS,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | }
\hline \text { Annual payment (due at end of year) } & \$ 23,150 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 8 \% \
\hline \text { Implicit rate (known to lessee) } & 6 \% \
\hline \text { Guaranteed residual value } & 10,000 \
\hline
\end{array}$$
A)92,431
B)97,516
C)99,237
D)104,989

Question

For the following lease,under IFRS,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | } 
\hline \text { Annual payment (due at end of year) } & \$ 23,150 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 8 \% \
\hline \text { Implicit rate (known to lessee) } & 6 \% \
\hline \text { Guaranteed residual value } & 10,000 \
\hline
\end{array}$$
A)92,431
B)97,516
C)99,237
D)104,989

Quizplus · Accepted Answer

The Answer of For the following lease,under IFRS,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | } 
\hline \text { Annual payment (due at end of year) } & \$ 23,150 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 8 \% \
\hline \text { Implicit rate (known to lessee) } & 6 \% \
\hline \text { Guaranteed residual value } & 10,000 \
\hline
\end{array}$$
A)92,431
B)97,516
C)99,237
D)104,989

For the Following Lease,under IFRS,determine the Minimum Present Value Calculation