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Information has been gathered for three leases that will be accounted for through straight-lin Required: For purchase option included in lease contract and lease 2, exercise of option reasonably ce- reasonably certain. For each leased asset, choose a depreciation period. Answer is complete but not entirely correct. Lease 1 Lease 2 Lease 3 Initial lease term years уears years Renewal option n/a years 3 4 years Economic life of the leased asset 7 years 10 years 10 years

Information has been gathered for three leases that will be accounted for through straight-lin Required: For purchase option included in lease contract and lease 2, exercise of option reasonably ce- reasonably certain. For each leased asset, choose a depreciation period. Answer is complete but not entirely correct. Lease 1 Lease 2 Lease 3 Initial lease term years уears years Renewal option n/a years 3 4 years Economic life of the leased asset 7 years 10 years 10 years

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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Information has been gathered for three leases that will be accounted for through straight-line depreciation: Required: For purchase option included in lease contract and lease 2, exercise of option reasonably certain. For lease 3, exercise of option not reasonably certain. For each leased asset, choose a depreciation period. X Answer is complete but not entirely correct. Lease 1 Lease 2 Lease 3 Initial lease term years years years Renewal option n/a 3 years 4 years Economic life of the leased asset 7 years 10 years 10 years Purchase option included in lease contract Yes No No Depreciation term 6 years 10 X yearS 20 Х уears
Transcribed Image Text:Information has been gathered for three leases that will be accounted for through straight-line depreciation: Required: For purchase option included in lease contract and lease 2, exercise of option reasonably certain. For lease 3, exercise of option not reasonably certain. For each leased asset, choose a depreciation period. X Answer is complete but not entirely correct. Lease 1 Lease 2 Lease 3 Initial lease term years years years Renewal option n/a 3 years 4 years Economic life of the leased asset 7 years 10 years 10 years Purchase option included in lease contract Yes No No Depreciation term 6 years 10 X yearS 20 Х уears
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