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Oroc Ltd hires out industrial plant on long-term operating leases. On 1 January 2011 it entered into a seven-year lease on a mobile crane to Mobaco Ltd. The terms of the lease are $200,000 payable on 1 January 2011, followed by six rentals of $120,000 paid on 1 January 2012 to 2017. Oroc was keen to rent out the crane, and so Mobaco has been given $300,000 up front to cover relocation costs, and the first year’s rental has been waived. The crane will be returned to Oroc on 31 December 2017. The
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