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financial position as of December 31, 20x1 reported a lease liability of P1,066,986, net of current portion. Lease payments of P200,000 are due every January 1st of the year. Calm Co.s incremental borrowing rate is 11% and the lessor's implicit rate, which is known to Calm Co., is 10%. What amount of lease liability, net of current portion, should Calm Co. report on December 31, 20x2? a. 871,052 b. 973,685 c. 986,986 d. 1,066,986

financial position as of December 31, 20x1 reported a lease liability of P1,066,986, net of current portion. Lease payments of P200,000 are due every January 1st of the year. Calm Co.s incremental borrowing rate is 11% and the lessor's implicit rate, which is known to Calm Co., is 10%. What amount of lease liability, net of current portion, should Calm Co. report on December 31, 20x2? a. 871,052 b. 973,685 c. 986,986 d. 1,066,986

FINANCIAL ACCOUNTING
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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correct answer is letter b, can u please help me explain why why?

of-use asset for P986,986 plus P93,301 loss d. Sunset Co. should ignore the modification Reconstruction of information 15. The noncurrent liabilities section of Calm Co.'s statement of financial position as of December 31, 20x1 reported a lease liability of P1,066,986, net of current portion. Lease payments of P200,000 are due every January 1st of the year. incremental borrowing rate is 11% and the lessor's implicit rate, which is known to Calm Co., is 10%. What amount of lease liability, net of current portion, should Calm Co. report Calm Co.'s on December 31, 20x2? a. 871,052 b. 973,685 c. 986,986 d. 1,066,986
Transcribed Image Text:of-use asset for P986,986 plus P93,301 loss d. Sunset Co. should ignore the modification Reconstruction of information 15. The noncurrent liabilities section of Calm Co.'s statement of financial position as of December 31, 20x1 reported a lease liability of P1,066,986, net of current portion. Lease payments of P200,000 are due every January 1st of the year. incremental borrowing rate is 11% and the lessor's implicit rate, which is known to Calm Co., is 10%. What amount of lease liability, net of current portion, should Calm Co. report Calm Co.'s on December 31, 20x2? a. 871,052 b. 973,685 c. 986,986 d. 1,066,986
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