Lagace Ltd. entered into a lease on June 1, 2017. The lease term is six years and

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Lagace Ltd. entered into a lease on June 1, 2017. The lease term is six years and requires annual rental payments of $30,000 at the beginning of each year. Lagace's incremental borrowing rate is 8% and the rate implicit in the lease is 9%.

(a) Calculate the capitalized amount of the right-to-use asset if Lagace follows IFRS 16.

(b) Calculate the capitalized amount of the leased asset if Lagace follows ASPE.

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Intermediate Accounting

ISBN: 978-1119048541

11th Canadian edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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Question Posted: Feb 28, 2017 11:34 AM

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Lagace Ltd. entered into a lease on June 1, 2017. The lease term is six years and

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a IFRS 16 For rightofuse assets the lessee uses the rate implicit in the lease whenever it can be re...View the full answer

Intermediate Accounting

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