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39 The calculation of the present value of lease payments requires the use of a discount (interest) rate. The discount rate used by the lessee
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The calculation of the present value of lease payments requires the use of a discount (interest) rate. The discount rate used by the lessee to compute the present value of lease payments is the lessee's incremental borrowing rate unless: A. the lessor explicitly tells the lessee its implicit rate. B. the lessor's implicit rate is readily determinable or the lessee is a nonpublic entity that has elected to use a risk-free rate. C. the risk-free rate is readily determinable. D. the prime interest rate is readily determinable Step by Step Solution
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