AAA Pte Ltd, with 31 December financial year-ends, leases out a machine to another company...
50.1K
Verified Solution
Link Copied!
Question
Accounting
AAA Pte Ltd, with 31 December financial year-ends, leases out a machine to another company on 1 January 20X1 on a finance lease for three years. The machine has a fair value of $50,000. The annual fixed lease payments of $19,753 will be receivable on 31 December 20X1, 31 December 20X2, and 31 December 20X3. The implicit rate of interest is 9%. Using the effective interest method, determine the amount of interest income (rounded to the nearest dollar) earned by AAA Pte Ltd in the year ending 31 December 20X2?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
