What is the amount of the right-of-use asset the company added to its balance sheet upon adoption of the new standard? $ 20,917 ✓ million What is the amount of the total operating lease liabilities the company added to its balance sheet upon adoption of the new standard? $ 20,921 x million
What is the amount of the right-of-use asset the company added to its balance sheet upon adoption of the new standard? $ 20,917 ✓ million What is the amount of the total operating lease liabilities the company added to its balance sheet upon adoption of the new standard? $ 20,921 x million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Analyzing and Interpreting Footnote on Operating and Capital Leases
Verizon Communications Inc. provides the following footnote relating to adoption of the new lease accounting standards (Topic 842) in its 10-Q report for the quarter ended March 31, 2019.
The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 842 were as follows:
($ millions)
Prepaid expenses and other
Operating lease right-of-use assets
Other assets
Accounts payable and accrued liabilities
Other current liabilities
Current operating lease liabilities
Deferred income taxes
Noncurrent operating lease liabilities
Adjustments
At Dec. 31, 2018 due to Topic 842 At Jan. 1, 2019
$4,908
$(296)
$4,612
20,917
(1,843)
10,545
22,501
8,239
33,795
13,922
39,188
1,409
(3)
(2)
2,638
139
17,283
(1,815)
369
1
20,917
8,702
22,498
8,237
2,638
33,934
17,283
Other liabilities
Retained earnings
Noncontrolling interests
Rent expense for operating leases is recognized on a straight-line basis over the term of the lease and is included in either Cost of services of Selling, general and administrative expense in our condensed consolidated statements of
on which rent is being paid.
12,107
39,557
1,410
What is the amount of the right-of-use asset the company added to its balance sheet upon adoption of the new standard?
$ 20,917
✔million
What is the amount of the total operating lease liabilities the company added to its balance sheet upon adoption of the new standard?
$ 20,921
x million.
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