Question
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
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.
a. How would Noel have recorded this transaction under SFAS No. 13?
b. How should Noel record this transaction under FASB ASC 842?
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Crossover Of Audit And Evaluation Practices Comparative Policy Evaluation
Authors: Maria Barrados, Jeremy Lonsdale
1st Edition
1032173874, 978-1032173870
