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Kingslake Ltd Signed a Non-Cancellable Lease Contract on 1 January

Question 42

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Kingslake Ltd signed a non-cancellable lease contract on 1 January 2012 for a machine that requires 5 annual payments of $200 000 at the start of each year.On the last annual payment,ownership will transfer from the lessor to Kingslake Ltd.The fair value of the asset if paid in cash is $75964.The following information is also available: Kingslake Ltd signed a non-cancellable lease contract on 1 January 2012 for a machine that requires 5 annual payments of $200 000 at the start of each year.On the last annual payment,ownership will transfer from the lessor to Kingslake Ltd.The fair value of the asset if paid in cash is $75964.The following information is also available: What is the implicit rate of this lease arrangement in accordance with AASB 117? A) 10% B) 12% C) 16% D) Between 10% and 12% What is the implicit rate of this lease arrangement in accordance with AASB 117?


A) 10%
B) 12%
C) 16%
D) Between 10% and 12%

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