Question
If the lessee knows the implicit interest rate computed by the lessor (e.g., 7%) and it is less than the lessees incremental borrowing rate (e.g.,
If the lessee knows the implicit interest rate computed by the lessor (e.g., 7%) and it is less than the lessees incremental borrowing rate (e.g., 8%), then lessee must use the lessors rate. Why does FASB require companies to use the lower rate of 7% and 8%?
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
10th Edition
1111822239, 324639767, 9781111822231, 978-0324639766
