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  • The Following Footnote Was Disclosed at The Beginning of 2016

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    Muhammad Shahid
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    The document discusses two leases that began in 2015 and 2016. A capital lease for $21,776 began on January 1, 2015 with a six-year life. An operating lease for $14,921 began on January 1, 2016 with a three-year term. Straight-line depreciation is used for all assets. The document asks for the lease liability on January 1, 2016 under current GAAP and proposed changes, and which provides more relevant information.

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    The Following Footnote Was Disclosed at the Beginning of 2016

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    The document discusses two leases that began in 2015 and 2016. A capital lease for $21,776 began on January 1, 2015 with a six-year life. An operating lease for $14,921 began on January 1, 2016 with a three-year term. Straight-line depreciation is used for all assets. The document asks for the lease liability on January 1, 2016 under current GAAP and proposed changes, and which provides more relevant information.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    6 views1 page

    The Following Footnote Was Disclosed at The Beginning of 2016

    Uploaded by

    Muhammad Shahid
    The document discusses two leases that began in 2015 and 2016. A capital lease for $21,776 began on January 1, 2015 with a six-year life. An operating lease for $14,921 began on January 1, 2016 with a three-year term. Straight-line depreciation is used for all assets. The document asks for the lease liability on January 1, 2016 under current GAAP and proposed changes, and which provides more relevant information.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
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    The following footnote was disclosed at the beginning of

    2016 #6378
    The following footnote was disclosed at the beginning of 2016 (January 1, 2016).The capital
    lease began on January 1, 2015 when the fair value of the capital lease was $21,776 (with a six-
    year life). The operating lease began on January 1, 2016 when the fair value of the operating
    lease at the inception of the lease was $14,921 (with a three-year lease term). Straight-line
    depreciation is used for all assets. Each lease requires equal annual payments to be made at
    year-end.Required:1. Under existing U.S. GAAP, what is the amount of lease liability recorded
    on the balance sheet at January 1, 2016?2. If the proposed changes in accounting for leases
    become authoritative, what would be the amount of lease liability recorded on the balance sheet
    at January 1, 2016?3. Which approach (part 1 or part 2) do you think provides more relevant
    information to the users of the financial statements? Why?View Solution:
    The following footnote was disclosed at the beginning of 2016

    ANSWER
    http://paperinstant.com/downloads/the-following-footnote-was-disclosed-at-the-beginning-
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