Business
Business, 14.03.2020 00:16, TACOSDAILY

Assume that a lessee had no significant economic incentive as of the beginning of a 10-year lease for a storefront to exercise an option to terminate the lease after 5 years. However, by the end of the fourth year, the lessee has decided to close the store within the next year, making termination of the lease "reasonably certain." At the end of the fourth year, the lessee would. a. Remeasure the lease liability. b. Determine the full term of the lease to be a total of four years with no years remaining c. Calculate the present value of the ten lease payments at the time of the reassessment using market interest rates at the time of the reassessmentd. Record an entry to decrease the lease payable account balance

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