Question: Ans this using US GAAP and if you can please ans it quickly that will be amazing. AMC Entertainment Holdings Inc. operates movie theaters and
Ans this using US GAAP and if you can please ans it quickly that will be amazing.
AMC Entertainment Holdings Inc. operates movie theaters and owns investments in other businesses. The company leases much of the space for the movie theaters and classifies most of these leases as operating leases. in its 10-Q for 2022 Q1, the compary reported the following information about its accounting for leases: NOTE 2-LEASES The Company leases theatres and equipment under operating and finance leases. The Company typically does not believe that exercise of the renewal options is reasonably certain at the lease commencement and, therefore, considers the initial base term as the lease term. Hypothetically, if the company did believe that the exercise of the renewal options was reasonably certain, and included the initial base term and the term of the renewal options as the lease term, how would the company's balance sheet be affected? It would report lower right-of-use assets and higher lease liabilities. It would report higher right-of-use assets and higher lease liabilities. It would report higher right-of-use assets and lower lease liabilities. It would report lower right-of-use assets and lower lease fiabilities
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