Kingslake Ltd signed a non-cancellable lease contract on 1 January 2012 for a machine that requires 5 annual payments of $200 000 at the start of each year.On the last annual payment,ownership will transfer from the lessor to Kingslake Ltd.The fair value of the asset if paid in cash is $75,964. The following information is also available:
What is the implicit rate of this lease arrangement in accordance with AASB 117?

Question

Kingslake Ltd signed a non-cancellable lease contract on 1 January 2012 for a machine that requires 5 annual payments of $200 000 at the start of each year.On the last annual payment,ownership will transfer from the lessor to Kingslake Ltd.The fair value of the asset if paid in cash is $75,964. The following information is also available:
 What is the implicit rate of this lease arrangement in accordance with AASB 117?

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The Answer of Kingslake Ltd signed a non-cancellable lease contract on 1 January 2012 for a machine that requires 5 annual payments of $200 000 at the start of each year.On the last annual payment,ownership will transfer from the lessor to Kingslake Ltd.The fair value of the asset if paid in cash is $75,964. The following information is also available:
 What is the implicit rate of this lease arrangement in accordance with AASB 117?

Kingslake Ltd Signed a Non-Cancellable Lease Contract on 1 January