Question: What discount rate does the lessee use in determining its right-of-use asset and lease liability?

What discount rate does the lessee use in determining its right-of-use asset and lease liability?


Step by Step Solution

★★★★★

3.30 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

In its calculations the lessee uses same rate the lessor uses if it is known to the lessee This ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

270-B-A-A-L (533).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

What discount rate does the lessor use in determining its lease receivable? How is the rate determined?

Q:

What should it use as its discount rate in determining its pension obligation?

Q:

According to current authoritative literature regrading leases, a lessee should record a capital lease as an asset equal to the present value at the beginning of the lease term of minimum lease...

Q:

A lease might specify that lease payments may be increased (or decreased) at some future time during the lease term depending on whether or not some specified event occurs such as revenues or profits...

Q:

Blossom Ltd., a public company following IFRS 16, recently signed a lease for equipment from Costner Ltd. The lease term is 7 years and requires equal rental payments of $19,960 at the beginning of...

Q:

Based on the information above and the right of use assets (vehicles) 1. write the justification of lease classification (for the lessee and lessor) 2. The lease amortization schedule (for the lessee...

Q:

i need it asap huhu Final Assessment The Car Group enters into a 15 year lease of machinery with annual lease payments of $6,000, payable at the beginning of each year. The contract specifies that...

Q:

Please find attached assignment and see if you can help me in that and provide me the main points (in the article of spencer and web (2015) as attached) that need to be criticized, also I need an...

Q:

could you help me in calculate profit and lost statement and income tax expenses (Australian Tax ) according to this form: 5. Income tax expense (a) Income tax expense Current tax (b) Numerical...

Q:

redo the journal entries for Example 4-2 (day one) and 4-11 (day two) using an incremental borrowing rate of 5%. Do the same for Example 4-4 (day one) and 4-13 (day two) also using IBR% of 5%....

Q:

Suppose that a company based in the United States will receive a payment of 10000000 in three months. The company is worried that the euro will deprecate and is contemplating using a forward contract...

Q:

Five batch jobs. A through E, arrive at a computer center at almost the same time. They have estimated running times of 10, 6, 2, 4, and 8 minutes. Their (externally determined) priorities are 3, 5,...

Q:

Guess the value of the limit ( if it exists ) by evaluating the function at the given numbers. Let f ( x ) = x 2 + 4 x - 5 x - 1 ( 7 ) We want to find the limit lim x 1 x 2 + 4 x - 5 x - 1 . Start by...

Q:

7. Illustrate consumer choice and the welfare gains in the previous problem with indifference curves.

Q:

Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2011, the company transferred $800,000 of accounts receivable to Milpitas....

Q:

The following facts apply to Walken Company during December 2011: a. Walken began December with an accounts receivable balance (net of bad debts) of 25,000. b. Walken had credit sales of 85,000. c....

Q:

Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2011, the following transactions related to receivables occurred: Feb. 28 Sold...

Q:

Question: At whatever point a driver experiences slowing down issues, particularly an erratic pulling aside, the scoundrel is constantly held to be the brake cushion. Minor components, particularly...

Q:

A review of univariate normal inference theory: consider X1, ,Xn a random sample from an assumed normal distribution with unknown mean y. We want to test the hypothesis H0: p = {.10 and Ha: ,u at #0...

Q:

Use technology to find (a) the multiple regression equation for the data shown in the accompanying table, (b) the standard error estimate and interpret the result, and (c) the coefficient of...