When a lessee makes an entry at the beginning of a lease, which of the following...

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When a lessee makes an entry at the beginning of a lease, which of the following...

When a lessee makes an entry at the beginning of a lease, which of the following are included in the amount that will be recorded as both a right-of-use asset and a lease liability? (Select all that apply.)

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Fair value of the asset leased
Fair value of the asset leased
Present value of a cash payment expected to be made at the end of the lease term because of a guaranteed residual value
Present value of a cash payment expected to be made at the end of the lease term because of a guaranteed residual value
Present value of expected residual value
Present value of expected residual value
Present value of periodic lease payments

business accounting

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Answer 1

Answer #1

Ans is

Present value of a cash payment expected to be made at the end of the lease term because of a guaranteed residual value

Present value of periodic lease payments

Reason:-

At the commencement date, lessee considers above two values in determining the amount of right of use asset and a lease liability.

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When a lessee makes an entry at the beginning of a lease, which of the following...

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