Lessor

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December 21, 2017 at 12:30 pm #424315
Alex
Member
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For example, lessee pays during 4 years $1000 per year, 5 % rate. Present value is PV(5%,4years,1000) = $3,546.

Let’s say net book value of the given machine was $2000 when transferring. Lessor recognizes receivable at
DR-Receivable – $3546
CR- Machine- $2000
CR- Income- (3546-2000) $1546

Is it correct ?

Thank you
December 27, 2017 at 9:50 pm #424964
P2-D2
Keymaster
- Topics: 4
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Hi,

Assuming that the present value is correct then it looks about right.

Thanks
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