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Adam Limited and Davies Limited enter into a finance lease agreement with the following terms:
? lease term is 3 years
? estimated economic life of the leased asset is 6 years
? 3 × annual rental payments of £23 000 each payment is one year in arrears
? residual value at the end of the lease term is not guaranteed by the lessee
? interest rate implicit in the lease is 7%.
-The period over which the asset should be depreciated by the lessee is:
Theories
Theories are systematic frameworks composed of concepts and propositions intended to explain phenomena by specifying relations among variables, providing a coherent set of guidelines for understanding and predicting behavior or events.
Hypotheses
Proposed explanations for a phenomenon, set forth as a starting point for further investigation or experimentation.
Phenomenon
Phenomenon refers to an observable event, fact, or circumstance that can be scientifically investigated to gain understanding or evidence about it, often used to describe unusual or remarkable occurrences.
Social Support Theory
A theory that suggests support from social networks has positive effects on an individual's health and well-being.
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