21Homework Answers
Answer is as follows:
Correct Option: $50,852
The Amount to be recorded is $11,000 * (PVAF 8%, 6years)
= $11,000 * 4.6229
= $50,851.9 , Approximately = $50,852
Contingent rent made at the end of lease period, if revenue exceeds the specified amount is not included in the right to use of asset and lease liability. Only annual lease payments are amortised over lease term.
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21
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CHAPTER 15, 5
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