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On January 1, 2022, Payton Corp. leases a building for three years from Oladipo Finance. At the date of lease inception,
Posted: Tue Jul 05, 2022 1:35 pm
by answerhappygod
- On January 1 2022 Payton Corp Leases A Building For Three Years From Oladipo Finance At The Date Of Lease Inception 1 (32.63 KiB) Viewed 5 times
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 $175,000, using Payton's incremental borrowing rate of 10%. Lease expense is properly recorded as $53,000 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?