Question
On January 1, 2022, Payton Corp. leases a building for three years from Oladipo Finance. At the date of lease inception, the present value of
On January 1, 2022, Payton Corp. leases a building for three years from Oladipo Finance. At the date of lease inception, the present value of minimum lease payments is properly calculated at $168,000, using Payton's incremental borrowing rate of 8%.
Lease expense is properly recorded as $51,000 for 2022, and the lease is properly classified as an operating lease.
What is the carrying value of the right-of-use asset at December 31, 2022 after all necessary adjustments?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
