Question
Case 13-1 Recording an Operating lease Noel Company leases 25 cell phones for three years. The rent for the phones is $1,700 a month for
Case 13-1 Recording an Operating lease
Noel Company leases 25 cell phones for three years. The rent for the phones is $1,700 a month for 36 months ($61,200 in total). The fair value of the leased phones is $65,000. Noels has an 5.5% incremental borrowing rate and the PV of the lease payments is $56,557.
- How should Noel record this transaction under FASB ASC 842?
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Edition
047116920X, 978-0471169208
