BrazilCo$$s Restaurant Lease On $1/1/$X$1,$ Presto$$s Brazilian subsidiary, BrazilCo, leases a vacant restaurant in

Brasilia for a $5-$year term with fixed payments amounting to the equivalent of $$100,000$ USD per year in year $1,$

$$150,000$ in years $2$ and $3,$ and $$200,000$ in years $4$ and $5.$ BrazilCo$$s incremental borrowing rate is $6\%.$ Assume the

restaurant$$s useful life is $20$ years

$-$

Next, identify differences in this reporting compared to U$.$S$.$ GAAP, as Presto will need to reconcile this report$-$

ing to GAAP for its consolidated financial statements