on january 1, 2021, reindeer signed a long term lease for an office building. the term of the lease acquired gee to pay 100,000 annually, beginning december 31, 2021 and continuingfor 30 years. on january 1, 2021, the present value of the lease payments is 1,125,000 at 8% interest rate implicit in the lease. initial direct costs amount to 50,000. What is the carrying amount of the lease liability on December 31, 2021? a. ₱ 1,035,000 b. ₱ 1,025,000 c. ₱ 1,065,000 d. ₱ 1,115,000
on january 1, 2021, reindeer signed a long term lease for an office building. the term of the lease acquired gee to pay 100,000 annually, beginning december 31, 2021 and continuingfor 30 years. on january 1, 2021, the present value of the lease payments is 1,125,000 at 8% interest rate implicit in the lease. initial direct costs amount to 50,000. What is the carrying amount of the lease liability on December 31, 2021? a. ₱ 1,035,000 b. ₱ 1,025,000 c. ₱ 1,065,000 d. ₱ 1,115,000
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 6E: Lessor Accounting Issues Ramsey Company leases heavy equipment to Terrell Inc. on March 1, 2019, on...
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on january 1, 2021, reindeer signed a long term lease for an office building. the term of the lease acquired gee to pay 100,000 annually, beginning december 31, 2021 and continuingfor 30 years. on january 1, 2021, the present value of the lease payments is 1,125,000 at 8% interest rate implicit in the lease. initial direct costs amount to 50,000. What is the carrying amount of the lease liability on December 31, 2021?
a. ₱ 1,035,000
b. ₱ 1,025,000
c. ₱ 1,065,000
d. ₱ 1,115,000
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