King Lessee Ltd leases an item of equipment on 1 July 20X1 on the following terms: Term of lease (years) Interest rate implicit in lease Initial lease payment up front on 1 July 20X1 8 10% $4,500 zero Subsequent lease payments, in arrears, each 30 June 10 Initial direct costs paid by King Lessee Useful life of equipment (years) $12,000 Assume straight line depreciation method is used for the lease asset and residual value is zero at the end of the lease term. At the end of the lease term, King Lessee is going to return the equipment to the lessor. What is the amount of the current lease liability and non-current lease liability at 30 June 20X2, each rounded to nearest hundred dollars? O Current liability $5600 Non-current liability $58,000 Current liability $6,200 Non-current liability $52,300 Current liability $5,800 Non-current liability $58,400 ☑ О Current liability $6,200 Non-current liability $58,400 O Current liability Non-current liability $5,600 $52,300
King Lessee Ltd leases an item of equipment on 1 July 20X1 on the following terms: Term of lease (years) Interest rate implicit in lease Initial lease payment up front on 1 July 20X1 8 10% $4,500 zero Subsequent lease payments, in arrears, each 30 June 10 Initial direct costs paid by King Lessee Useful life of equipment (years) $12,000 Assume straight line depreciation method is used for the lease asset and residual value is zero at the end of the lease term. At the end of the lease term, King Lessee is going to return the equipment to the lessor. What is the amount of the current lease liability and non-current lease liability at 30 June 20X2, each rounded to nearest hundred dollars? O Current liability $5600 Non-current liability $58,000 Current liability $6,200 Non-current liability $52,300 Current liability $5,800 Non-current liability $58,400 ☑ О Current liability $6,200 Non-current liability $58,400 O Current liability Non-current liability $5,600 $52,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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