Diamond Corporation entered into a finance or capital lease on January 1, 2014. The lease term is

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Diamond Corporation entered into a finance or capital lease on January 1, 2014. The lease term is six years and requires annual rental payments of $30,000 at the beginning of each year. Diamond's incremental borrowing rate is 8% and the rate implicit in the lease is 9%.
(a) Calculate the capitalized amount of the leased asset if Diamond follows IFRS.
(b) Calculate the capitalized amount of the leased asset if Diamond follows ASPE.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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