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IFRS Ch. 21 Problem  - depreciated...

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IFRS Chapter 21   Try the following IFRS Practice Problem:     IFRS – Practice Problem – CH. 21   To raise operating funds, WiiFlii Aviation sold an airplane on January 1, 2009, to  a finance company for $770,000.  WiiFlii immediately leased the plane back for a  13-year period, at which time the ownership of the airplane would transfer back  to them.  The airplane’s fair value is $800,000.  Its cost and its book value were  $620,000.  Its useful life is estimated at 15 years.  The lease requires WiiFlii to  make payments of $102,771 to the finance company each January 1.  WiiFlii 
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Unformatted text preview: depreciated assets on a straight-line basis. The lease has an implicit rate of 11%. Required: Prepare the appropriate entries for WiiFlii on: A) January 1, 2009, to record the sale-leaseback. B) December 31, 2009, to record necessary adjustments. C) How might this situation differ if WiiFlii prepares its financial statements according to International Accounting Standards? Include the appropriate journal entries. Review the solution after you have attempted the problem....
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