This active lease has installments that are not evenly distributed over the lease period. That the very first year's rent is $14,000, with a total payment of $120,000 throughout the five-year lease period. Interest expenditure for the first year is $6,000, based on the present value of the entire lease payments and the implicit interest rate. For the first year, the right-to-use asset should be amortised as follows: $0 $8,000 $20,000 $24,000
This active lease has installments that are not evenly distributed over the lease period. That the very first year's rent is $14,000, with a total payment of $120,000 throughout the five-year lease period. Interest expenditure for the first year is $6,000, based on the present value of the entire lease payments and the implicit interest rate. For the first year, the right-to-use asset should be amortised as follows: $0 $8,000 $20,000 $24,000
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 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...
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This active lease has installments that are not evenly distributed over the lease period. That the very first year's rent is $14,000, with a total payment of $120,000 throughout the five-year lease period. Interest expenditure for the first year is $6,000, based on the present value of the entire lease payments and the implicit interest rate. For the first year, the right-to-use asset should be amortised as follows:
$0
$8,000
$20,000
$24,000
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