IFRS-CH21-Solution - IFRS Practice Problem Solution CH. 21...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Present value of periodic lease payments* ($102,771 x 7.49236 ** ) $770,000 * * rounded ** present value of an annuity due of $1: n=13, i=11% The lease meets at least one (actually 3 of 4 in this case) criteria for classification as a capital lease. A) January 1, 2009 Cash (given). ..................................................................... 770,000 Airplanes (carrying value). ............................................. 620,000 Deferred gain on sale-leaseback (difference). ............... 150,000 Leased airplane (present value of lease payments). .................. 770,000 Lease payable (present value of lease payments). .............. 770,000 Lease payable . ................................................................ 102,771 Cash. ........................................................................... 102,771 B) December 31, 2009 Interest expense (11% x [$770,000 - 102,771]). ....................... 73,395 Interest payable . ......................................................... 73,395
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/30/2010 for the course BUSINESS 4230 taught by Professor Dee during the Spring '10 term at Community College of Denver.

Page1 / 4

IFRS-CH21-Solution - IFRS Practice Problem Solution CH. 21...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online