3. Which of the following is true in regards to the reassessment of the lease term? A. If the lessee reassesses the lease term, it must remeasure the lease liability as the present value of the remaining payments. B. If the lessee reassesses the lease term, the discount rate for the new term must be the interest rate used at the beginning of the lease. C. The lessee is not permitted to reassess its initial determination of the lease term or discount rate. D. The lesser Canary assess its initial determination of the lease term if there is a triggering event.
3. Which of the following is true in regards to the reassessment of the lease term? A. If the lessee reassesses the lease term, it must remeasure the lease liability as the present value of the remaining payments. B. If the lessee reassesses the lease term, the discount rate for the new term must be the interest rate used at the beginning of the lease. C. The lessee is not permitted to reassess its initial determination of the lease term or discount rate. D. The lesser Canary assess its initial determination of the lease term if there is a triggering event.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 8RE: Use the following information to decide whether this equipment lease qualifies as an operating,...
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