4. Basel has acquired a plant under a finance lease on the following terms: a. Payment of RM100,000 is to be made every

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4 Basel Has Acquired A Plant Under A Finance Lease On The Following Terms A Payment Of Rm100 000 Is To Be Made Every 1 (172.76 KiB) Viewed 71 times

4. Basel has acquired a plant under a finance lease on the following terms: a. Payment of RM100,000 is to be made every six months in advance. b. First payment is to be made on 1 January x2. c. The lease provides for a total of ten instalment payments. d. Fair value of the asset is RM810,000. Economic life of the asset is six years, . f. At the end of the lease period, title to the plant is to pass to Basel. g. Interest rate in the lease is 10% per annum. h. Lessee is to incur initial direct cost of RM10,000. e.