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Mid-year entry into a lease
Shaeen Ltd entered into an agreement to lease an item of plant on 1 October 20X8. The lease required four annual payments of $200,000 each, commencing on 1 October 20X8. The plant has a useful life of four years and is to be scrapped at the end of this period. The present value
of the lease payments is $700,000. The implicit interest rate within the lease is 10%.Can you please help me performing lease amortization schedule for this problem?
Thanks.
Please can you indicate where this ACCA question is from and which part of the model answer you are unsure of. It feels a bit more like in a FR rather than SBR question. I am also unsure what you mean by lease amortisation schedule because this term is not used by the ACCA.
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