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Business, 07.10.2020 22:01 kekeke68

On January 1, Company A leased equipment for a six-year period. Annual lease payments are $12,000 due on December 31 of each year. The payments are calculated by the lessor using a 6% discount rate. If Company A's revenues exceed a specified amount during the lease term, Company A will pay an additional $5,000 lease payment at the end of the lease. Company A estimates a 60% probability of meeting the target revenue amount. What amount should be recorded as the right-of-use asset and lease liability under the contingent rent agreement

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On January 1, Company A leased equipment for a six-year period. Annual lease payments are $12,000 du...
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