On 1 July 2021, Pretty Ltd leases a machine with a fair value of $109 444 to Cool Ltd for 5 years for an annual lease payment (payable in advance) of $25 000, and Cool Ltd guarantees in full the estimated residual value of $15 000 on return of the asset. Petty Ltd does not incur any initial direct costs in preparing the lease agreement. What would be the interest rate implicit in the lease? Group of answer choices 9% 14% 12% 10%

On 1 April 2016, Pear Limited entered a three-year lease agreement to purchase a vehicle. The vehicle had a cash purchase price of N$40,000. The lease required an upfront payment of N$10,000, and three annual payments on 31 March 2017, 2018 and 2019 of N$12,063.45. The implicit rate of interest is 10% per annum. What amount should be presented as the current liability for finance lease obligation at 31 March 2017? Question 10Select one: a. N$9,969.80 b. N$12,063.45 c. N$20,936.55 d. N$10,966.76

ABC Ltd signed a 4-year contract with Comp Ltd for the use of a customised machinery on 1 July 2022.ABC Ltd intends to return the asset at the end of the lease term. The leased machinery meets the criteria of a leased asset in accordance with AASB16 Leases. The following information shows the lease terms: Lease term (non-cancellable)4 yearsExpected useful life of the machinery6 yearsExpected fair value of the machinery at the end of lease term$30 000Residual value guaranteed$50 000Bargain purchase price at the end of lease term$60 000Net initial directly attributable costs (paid at 1 July 2022)$8 000Annual lease payment (paid in arrears) $70 000Interest rate implicit in the lease10% p.a. Required:Which journal entries that ABC needs to record on 1 July 2022 in relation to the lease contract?

On January 1, Year One, Green Company leases a machine for four years. Because Green is a relatively new business and is struggling with its cash flows, the lessor sets the payments as $10,000 per year for the first two years and $20,000 for the last two years. These payments were computed based on an implicit interest rate of 10 percent per year. The contract does not meet any of the five criteria to be reported as a finance lease. What amount of expense should Green recognize in Year Two?

Small Ltd signed a 3-year contract with Big Ltd for the use of a machinery on 1 July 2022 with the option to purchase the machinery at the end of the lease term. It is reasonably expected that Small Ltd will exercise the bargain purchase option. The leased machinery meets the criteria of a leased asset in accordance with AASB16 Leases. The following information shows the lease terms: Lease term (non-cancellable) 3 years Expected useful life of the machinery 8 years Expected residual value of the machinery $5,000 Residual value guaranteed $40 000 Expected fair value of the machinery at the end of lease term $50 000 Bargain purchase price at the end of lease term $60 000 Net initial directly attributable costs (paid at 1 July 2022) $10 000 Initial lease payment (paid at 1 July 2022) $30 000 Annual lease payment (paid in arrears at 30 June) $80 000 Annual maintenance & insurance included in the annual lease payment $10 000 Interest rate implicit in the lease 10% p.a. Required: What is the amount of depreciation expense that Small Ltd should recognise for the year ended 30 June 2023 (rounded to the nearest dollar) in accordance with the requirements of AASB 16 Leases? Group of answer choices $32,395 $84,720 $31,770 $26,770

You are working for an equipment leasing company, and your boss has asked you to calculate the half-yearly lease payments for new equipment for a client. The cost of the equipment is $68,000 and the lease term is 8 years. The interest rate is 11.2% p.a. compounding semi-annually. The lease requires lease payments that are the same every half-year, except for the final payment which is a residual/lump sum payment of $9,000. Assuming the lump sum payment is made in the final half-year period (16), calculate the half-yearly lease amount for the other 15 periods. Type your answer as a positive number into the box in dollar and cents (i.e. 2 decimal places and no negative (-) symbol).(Ignore taxes and depreciation. Assume lease payments occur at the end of each period.)