During the year ended 30 September 2021 Hanlon Plc entered into two lease transactions. On 1 October 2020 Hanlon made a payment of £90,000 being the first of five equal annual payments under a lease for an item of plant. The lease has an implicit interest rate of 10% and the present value of the total lease payments on 1 October 2020 was £340,000 On 1 January 2021, Hanlon made a payment of £18,000 for a one-year lease of an item of equipment. What amount in total would be charged to Hanlon Plc’s statement of profit or loss for the year ended 30 September 2021 in respect of the above transactions. Show your calculations
During the year ended 30 September 2021 Hanlon Plc entered into two lease transactions. On 1 October 2020 Hanlon made a payment of £90,000 being the first of five equal annual payments under a lease for an item of plant. The lease has an implicit interest rate of 10% and the present value of the total lease payments on 1 October 2020 was £340,000 On 1 January 2021, Hanlon made a payment of £18,000 for a one-year lease of an item of equipment. What amount in total would be charged to Hanlon Plc’s statement of profit or loss for the year ended 30 September 2021 in respect of the above transactions. Show your calculations
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the year ended 30 September 2021 Hanlon Plc entered into two lease transactions.
On 1 October 2020 Hanlon made a payment of £90,000 being the first of five equal annual
payments under a lease for an item of plant. The lease has an implicit interest rate of 10% and
the present value of the total lease payments on 1 October 2020 was £340,000
On 1 January 2021, Hanlon made a payment of £18,000 for a one-year lease of an item of
equipment.
What amount in total would be charged to Hanlon Plc’s statement of profit or loss for the year
ended 30 September 2021 in respect of the above transactions. Show your calculations
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