Harcourt Company enters into a lease agreement with Brunsell Inc. to lease office space for a term

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Harcourt Company enters into a lease agreement with Brunsell Inc. to lease office space for a term of 72 months. Lease payments during the first year are $5,000 per month. Each year thereafter, the lease payments increase by an amount equivalent to the percentage increase in a price index. For example, if the price index increases 2% in the second year, the monthly payment increases to $5,100. In the second year, the price index increases by 3%. What are the lease payment amounts used to record this lease in the second year?
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Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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