(Lessee-Lessor, Sale-Leaseback) On December 30, 2020, Dedresan Inc. sold a warehouse with 10 separate spaces with loading...
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(Lessee-Lessor, Sale-Leaseback)
On December 30, 2020, Dedresan Inc. sold a warehouse with 10 separate spaces with loading bays to Mack Finance Ltd. for $1.3 million and immediately leased back two of the 10 spaces. The warehouse was carried on Dedresan’s books at $800,000 and had a remaining useful life of 15 years. The term of the lease is five years with no renewal period. Debrecen is a public company following IFRS 16 to account for its leases. For the year ended December 31, 2020, identify the items that would be reported on Dedresan’s income statement related to the sale-leaseback transaction.
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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