On 30 June 2015,Malta Ltd leased a vehicle to Tango Ltd.Malta Ltd had purchased the vehicle on that day for its fair value of $75 625.The lease agreement cost Malta Ltd $1200 to have drawn up and requires Tango to reimburse Malta for annual insurance costs of $945.The amount recorded as a lease receivable by Malta Ltd at the inception of the lease is:
A)$74 425.
B)$75 625.
C)$76 570.
D)$76 825.

Question

Quizplus · Accepted Answer

The Answer of On 30 June 2015,Malta Ltd leased a vehicle to Tango Ltd.Malta Ltd had purchased the vehicle on that day for its fair value of $75 625.The lease agreement cost Malta Ltd $1200 to have drawn up and requires Tango to reimburse Malta for annual insurance costs of $945.The amount recorded as a lease receivable by Malta Ltd at the inception of the lease is:
A)$74 425.
B)$75 625.
C)$76 570.
D)$76 825.

On 30 June 2015,Malta Ltd Leased a Vehicle to Tango