On 1 January 2020, a company entered into a 3-year lease of a machine. The compa...
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On 1 January 2020, a company entered into a 3-year lease of a machine. The company incurs initial direct costs of R7 500 and is required to make 3 lease payments of R250 000 each. These payments fall due on 1 January 2020, 2021, and 2022. The rate of interest implicit in the lease is 15% per annum.
The right-of-use asset should be initially measured at:
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