Culinary Creations leased kitchen equipment under a five-year lease with an option to renew for three years
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Culinary Creations leased kitchen equipment under a five-year lease with an option to renew for three years at the end of five years and an option to renew for an additional three years at the end of eight years. The first threeyear renewal option can be exercised for one-half the original and usual rate. What is the length of the lease term that Culinary Creations should assume in recording the transactions related to the lease?
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The lease term will be eight years The lease term for both the lessee and the less...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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