Aragon Co. leased an equipment to a lessee on January 2, 2010 under a direct financing lease with the following provisions - cost of equipment P1,695,000; Annual rental payable at the end of the year P300,000; Useful life and lease term, 10 years. Aragon Co. incurred and paid P71,700 in negotiation and arranging the lease. The present value of an ordi nary annuity of 1 at 12% for 10 years is 5.650 and the present value of an ordinary annuity of 1 at 11% for 10 years is 5.889. What is the total financial revenue to be recognized over the lease term?
Aragon Co. leased an equipment to a lessee on January 2, 2010 under a direct financing lease with the following provisions - cost of equipment P1,695,000; Annual rental payable at the end of the year P300,000; Useful life and lease term, 10 years. Aragon Co. incurred and paid P71,700 in negotiation and arranging the lease. The present value of an ordi nary annuity of 1 at 12% for 10 years is 5.650 and the present value of an ordinary annuity of 1 at 11% for 10 years is 5.889. What is the total financial revenue to be recognized over the lease term?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Aragon Co. leased an equipment to a lessee on January 2, 2010 under a direct financing lease with the following provisions - cost of equipment P1,695,000; Annual rental payable at the end of the year P300,000; Useful life and lease term, 10 years. Aragon Co. incurred and paid P71,700 in negotiation and arranging the lease. The present value of an ordi nary annuity of 1 at 12% for 10 years is 5.650 and the present value of an ordinary annuity of 1 at 11% for 10 years is 5.889. What is the total financial revenue to be recognized over the lease term?
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