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Sale and Leaseback
Sale and Leaseback
Vingno 08-18-2021
BSA-3
Problem 16-1
Cash 1,200,000
Accumulated Depreciation-Equipment 1,500,000
Equipment 2,500,000
Gain on right transferred 200,000
Equipment 1,200,000
Cash 1,200,000
Cash 300,000
Rent Income 300,000
Problem 16-2
Problem 16-3
1. Initial Measurement of lease liability 2,274,600
(600,000*3.791)
5. BOOKS OF BUYER-LESSOR
Problem 16-4
1. Initial Measurement of lease liability (800,000*3.312) 2,649,600
5. BOOKS OF BUYER-LESSOR
Cash 301,932
Financial Asset 221,932
Interest Income (1,000,000*8%) 80,000
Problem 16-5
1. Initial Measurement of Lease liability (500,000*2.67) 1,335,000
5. BOOKS OF BUYER-LESSOR
Problem 16-6
Sale price at fair value 2,400,000
Building 5,000,000 Carrying Amount (5,000,000-
1,600,000
Accumulated Depreciation 3,400,000 3,400,000)
Remaining useful life 15 years
lease tearm 8 years
Annual payment 300,000
PV of OA of 1 at 6% for 8 6.21
periods
Building 2,400,000
Cash 2,400,000
Cash 300,000
Rent Income 300,000
Problem 16-7
Sale price at fair value 5,000,000
Carrying Amount of Building 6,500,000
Remaining useful life 20 years
lease tearm 4 years
Annual payment 300,000
Implicit interest rate 6%
PV of OA of 1 at 6% for 4 3.465
periods
5. BOOKS OF BUYER-LESSOR
Problem 16-8
BOOKS OF Buyer-Lessor