Case 2: On January, 1 2021, Silver Company entered into a lease for floor space with the following information: Floor Space Annual rental payable at the beginning of each year Lease Term Incremental Borrowing Rate Implicit Interest Rate 500 square meters 300,000 7 years 8% 10% On January 1, 2024, Silver Company and the lessor agreed to amend the original terms of the lease with the following information: 200 square meters 120,000 10% 12% Floor Space Annual rental payable at the beginning of each year Incremental Borrowing Rate Implicit Interest Rate When present value is needed, round off the present value factor to two decimal places.

Case 2: On January, 1 2021, Silver Company entered into a lease for floor space with the following information: Floor Space Annual rental payable at the beginning of each year Lease Term Incremental Borrowing Rate Implicit Interest Rate 500 square meters 300,000 7 years 8% 10% On January 1, 2024, Silver Company and the lessor agreed to amend the original terms of the lease with the following information: 200 square meters 120,000 10% 12% Floor Space Annual rental payable at the beginning of each year Incremental Borrowing Rate Implicit Interest Rate When present value is needed, round off the present value factor to two decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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