help me to answer the question with supporting computation. thank you1. How much should malu record as an asset called right of use asset under present gaap, and a corresponding liability at the beginning of the lease?2. Assume this time it is an operating lease insted of a capital/finance lease, how much right of use asset should malu record at the beginning of the lease? 11. On July 1, 2020, Malu entered into a ten-year noncancellable lease with Ruth Corporation for amachine that is owned by Ruth. The machine had a fair market value of P800,000 at the beginning of the lease and an estimated useful life of 12 years. The present value of the minimum lease payment isP480,000. A bargain option clause is provided.How much should Malu record as an asset called Right of Use Asset under present GAAP, and acorresponding liability at the beginning of the lease?

Right of use Asset It is a lessee's right to use an asset during the life of a lease. It is the…

lease and an estimated useful life of 12 years. The present value of the minimum lease payment is P480,000. A bargain option clause is provided. How much should Malu record as an asset called Right of Use Asset under present GAAP, and a corresponding liability at the beginning of the lease?

lease and an estimated useful life of 12 years. The present value of the minimum lease payment is P480,000. A bargain option clause is provided. How much should Malu record as an asset called Right of Use Asset under present GAAP, and a corresponding liability at the beginning of the lease?

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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Complete this question by entering your answers in the tabs below. Req 1 to 3 and 5 Req 4 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 5. Calculate the amount Branch Motors would record as sales revenue. Note: Round your intermediate and final answers to nearest whole dollar. 1. This lease should be classified by Yard Art as a 2. The amount that Yard Art would record as a right-of-use asset and a lease liability would be 3. This lease should be classified by Branch Motors as a 5. The amount that Branch Motors would record as sales revenue would be Show less▲