On 1st January 20X2, Bailey plc leased a machine under a four-year lease with four annual lease payments of £25,000 made on 31st Dec of each year. The lease has an implicit annual interest rate of 10%. What amount will appear under current liabilities in respect of this lease in the statement of financial position of Bailey plc as at 31st December 20X2? Select one: a. £20,661 b. £18,783 C. £20,408 d. £25,000 e. £43,388

On 1st January 20X2, Bailey plc leased a machine under a four-year lease with four annual lease payments of £25,000 made on 31st Dec of each year. The lease has an implicit annual interest rate of 10%. What amount will appear under current liabilities in respect of this lease in the statement of financial position of Bailey plc as at 31st December 20X2? Select one: a. £20,661 b. £18,783 C. £20,408 d. £25,000 e. £43,388

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On 1st January 20X2, Bailey plc leased a machine under a four-year lease with four annual lease payments of £25,000 made on 31st Dec of each year. The lease has an implicit annual interest rate of 8%. What amount will appear under current liabilities in respect of this lease in the statement of financial position of Bailey plc as at 31st December 20X2? Select one: a. £25,000 b. £44,582 c. £20,408 d. £21,433 e. £19,846
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On 1st January 20X2, Bailey plc leased a machine under a four-year lease with four annual lease payments of £25,000 made on 31st Dec of each year. The lease has an implicit annual interest rate of 8%. What amount will appear under current liabilities in respect of this lease in the statement of financial position of Bailey plc as at 31st December 20X2? a. £21,433 b. £20,408 c. £19,846 d. £25,000 e. £44,582
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