Question: On January 1, 2023, Continuous Computing leased a set of servers from Harry's Hardware with annual payments of $26,000 for 4 years. The servers are
On January 1, 2023, Continuous Computing leased a set of servers from Harry's Hardware with annual payments of $26,000 for 4 years. The servers are expected to have a useful life of 6 years and have an ordinary selling price of $140,000. Continuous Computing's average borrowing rate is 6%. On January 1, 2025, immediately after making the annual payment, the lease is renegotiated to be extended by two years and lease payments increase to $35,000 per year, effective immediately. Harry's Hardware originally purchased the servers for $80,000 and depreciates all assets according to the straight-line method. How is revenue allocated in multi-segment reporting?
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