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On 1 January 2009, Kamulu Limited leased a machine from General Machines Ltd. under a finance lease agreement. Kamulu Limited was to make installment lease payments of Sh. 14,000,000 every six months on 30 June and 31 December in arrears.The first payment was made on 30 June 2009.The fair value of the machine was Sh.60,000,000 with an estimated useful life of 3 years.The interest rate implicit in the lease was 10% per six months.Determine Extracts of the statement of comprehensive income for the years ended 31 December2009 and 2010.
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Distinguish between "deferred tax liabilities" and "deferred tax assets".
Date posted: February 8, 2019 . Answers (1)
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