I am learning intermediate accounting and how to account for leases. I have a question about the
Fantastic news! We've Found the answer you've been seeking!
Question:
I am learning intermediate accounting and how to account for leases. I have a question about the calculation of present value for the right to use of the lease. my example specifically has a potential 2 year extension that both the lessee and lessor expect to use. here is the example:
I am curious to know why the "n" value for the extension of the lease is calculated at 4 and 5 for the lease when the original lease is for 4 years and the extensions are for years 5 and 6?
Related Book For
Accounting Theory Conceptual Issues in a Political and Economic Environment
ISBN: 978-1412991698
8th edition
Authors: Harry Wolk, James Dodd, John Rozycki
Posted Date: