On January 1, 20×1, Entity X (Customer) enters into a 4-year lease of equipment with Entity Y (Supplier)
On January 1, 20×1, Entity X (Customer) enters into a 4-year lease of equipment with Entity Y (Supplier). The annual rent is ₱220,000, payable at the end of each year. The equipment has a remaining useful life of 10 years. The interest rate implicit in the lease is 10% while the lessee’s incremental borrowing rate […]