On 30 June 2021, Monty Ltd Leased a Motor Vehicle

question 15

Multiple Choice

On 30 June 2021, Monty Ltd leased a motor vehicle to Taylor Ltd. Monty Ltd had purchased the motor vehicle on that day for its fair value of $68 346. The lease agreement cost Monty $1659 to have drawn up and requires Taylor to reimburse Monty for annual insurance costs of $1500. The amount recorded as a lease receivable by Monty Ltd at the inception of the lease is:

• A) $66 846.
• B) $69 849.
• C) $70 005.
• D) $71 505.

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Definitions:

Nonresidential Structures

These refer to buildings and facilities not used for housing, such as offices, factories, and shopping centers.

Intangible Capital

Non-physical assets such as brand reputation, intellectual property, and human skills that contribute to a company's value.

Goodwill

An intangible asset representing the value of a business's brand, customer base, and reputation which can influence future earnings.

Intangible Capital

Non-physical assets possessed by a firm, such as copyrights, patents, trademarks, and goodwill, that contribute to its value.