Rubis Équipements leases scanners to a clinic under a finance lease that commenced on 1 January 20X1. At that date, the net investment was 400,000 (implicit rate: 7 %). The clinic pays 100,000 at the end of each calendar year. Record Rubis Équipements' entries at 31 December 20X2, the second year of the lease.
- Net investment at 1 January 20X1
- 400,000
- Interest rate implicit in the lease
- 7 %
- Annual payment made at year-end
- 100,000