Fitbit Ltd has leased a machine on the following terms: Date of entering lease 1 July 2019 Duration of lease 5 years Life of asset 6 years Unguaranteed residual value $40,000 Lease payments inception (at the start) $60,000 Annual payments (5) $65,000 Implied rate 11.0 % Required: Determine the Fair Value (rounded off) of the leased asset. (7 marks)

BNM Itd. Acquired on asset of Rs. 440,000 through a finance lease agreement pn 1-1-2018 with no residual value. The lease term is five years with annual lease rentals of Rs. 100,000 payable at the start of each year. The implicit rate of interest is 10%. Calculate: al Gross investment in lease b. Net investment in lease C. Uneared finance income Lease amortization schedule d.

needed: lease liabilityright of use of assetdepreciation expenseplease use a table for explaining lease liab.

FRM Ltd acquired an item of equipment and enters into a non -cancellable lease agreement with FEN Equipment LTd on 1January 2015. The lease consists of the following: Date of inception.      1/1/15 Duration of Lease       4 years Life of Leased asset.   5 years Lease payments (annual)  $550000(annual) which includes $80000 for Maintenance and insurance costs per annum Guaranteed residual value (Added to final payment).                  $190000 Interest rate.                       7% Formula for PV of $1/(1+k)n Formula for present value of annuity of $1 per period for n periods= 1-1/(1+k)n /k Where k is the discount rate expressed in decimal Required 1. Determine the PV of minimum lease rental payment.  2. Prepare the journal entries for FRM Ltd (The lessee) using the Net method for the following  a) Transfer of control b) Payment of annual payments for 2015 and 2016.