Lease problemcatherines internet cafeacute cic enters into, Ask an Expert

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Lease Problem

Catherine's Internet Café (CIC) enters into a new operating lease for a 10-year term at a monthly rental of $1,500. To induce CIC into the lease, the lessor agreed to a free-rent period for the first 12 months.

Required:

1. Determine the amount of lease expense, if any, that CIC would recognize in the first month of the lease.
2. Identify the IASB pronouncement that supports your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92739266

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