On 30 June 2016, Mala Ltd Leased a Vehicle to Tango

On 30 June 2016, Mala Ltd leased a vehicle to Tango Ltd. Mala Ltd had purchased the vehicle on that day for its fair value of €89 721. The lease agreement cost Mala Ltd €1457 to have drawn up and requires Tango to reimburse Mala for annual insurance costs of €1050. The amount recorded as a lease receivable by Mala Ltd at the inception of the lease is:

A) €88 264;
B) €89 721;
C) €90 771;
D) €91 178.

Correct Answer:

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