When a lessee makes an entry at the beginning of a lease, which of the following are included in the amount that will be...

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When a lessee makes an entry at the beginning of a lease, which of the following are included in the amount that will be...

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.)

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 expected residual value
Present value of periodic lease payments
Sum of the payments made over the term of the lease

business accounting

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Answer 1

Answer #1

The amount included in the amount that will be recorded as both a right-of-use asset and a lease liability are:

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

Option B and D is correct

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Answer 2

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