Swifty Corporation leased an office under a five-year contract, which has been accounted for as an operating
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Question:
Swifty Corporation leased an office under a five-year contract, which has been accounted for as an operating lease. Faced with the downturn in the economy, the viable company decided to sub-lease the office. However, they have had no luck with this effort and the landlord will not allow the lease to be cancelled. The payments are $9000 per year and there are four years left on the lease. The company's most recent interest rate for financing from a bank is 5%. The risk-free rate on government bonds is 6%. What is the provision for the lease under IFRS? (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
a. | $30493 |
b. | $31655 |
c. | $52800 |
d. | $29147 |
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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