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Eduardwww [97]
3 years ago
10

Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the f

irst payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. If Pizza ltd.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pizza ltd.) is 8%, what is the amount recorded for the leased asset at the lease inception?
Business
1 answer:
adoni [48]3 years ago
8 0

Answer:

Sh. 300,001.60

Explanation:

Note: <em>Missing word has been attached</em>

Particulars                                                     Amount

Annual payments                                          86,038

x PV Annuity due 8%, 10 periods                 3.48685

Amount recorded for the leased asset      300,001.60

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Answer:

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3 years ago
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Vanyuwa [196]

Answer:

37.5%

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7 0
3 years ago
What would be the purchase price for a $5,000, 91-day T-bill paying 3% interest?
Nat2105 [25]
Well, you just need to find it using this formula :

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Hope this help
3 0
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Answer:

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