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The present value of the 10 payments is $887,800. $100,000 of this relates to the additional finance provided by the buyer (the excess of $1,000,000 over the asset’s fair value, $900,000). The remaining $787,800 relates to the lease liability. (study hub additional financing part)
The present value of the 10 payments is $9.3 m (After first payment). $2 relates to the additional finance provided by the buyer but in this condition both are separately accounted (Pre mock Sept 2024)
why what is the reason?
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