RSM221H1 Chapter Notes -Cash Flow, Financial Statement, Unearned Income

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Five periodic lease payments ,985. 50 4. 31213* ,294. 41. Fair market value of leased asset to lessor. Less: present value of unguaranteed residual value ,000 x . 68058 (present value of 1 at 8% for 5 periods) Five periodic lease payments ,985. 50 3. 99271* ,678. 04. *present value of annuity due of 1 for 5 periods at 8%. Exercise 20-15 (continued) (d) note x: (on vick leasing inc. "s financial statements:) The company"s net investment in a financing lease includes the following: Future minimum lease payments receivable under the financing lease are as follows: Vick leasing would also need to disclose any contingent rental income in the year, the allowance for doubtful receivables and general information about their leasing arrangement with rock corporation. Note as determined in exercise 20-17, part (b): The lease agreement has a bargain purchase option. The collectability of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor.

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