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  3. c. compute the value of the right-of-use asset on

c. Compute the value of the right-of-use asset on January 1, 2020, rounding amount to...

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Accounting

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c. Compute the value of the right-of-use asset on January 1, 2020, rounding amount to the nearest dollar.
Reporting Finance Lease, Guaranteed Residual-Lessee On the first day of its accounting year, January 1, 2020, Lessee Inc. leased a building at an annual payment of $138,848 to be paid at the beginning of each year for 10 years. The first payment was paid immediately. The building, which is new, cost $1,100,000 and has an estimated useful life of 12 years. The lessor's implicit rate is 6% and is known to Lessee Inc. The residual value of the building of $30,000 was guaranteed by Lessee Inc. who expects the residual value to approximate $20,000. Lessee Inc. incurred the following additional costs and received the following incentives pertaining to this lease: 0 Paid legal fees of $1,000 related to the execution of the lease. O Paid a fixed lease payment of $138,848 plus a $3,500 recurring payment to the lessor for hazard insurance on the building. O Received a lease incentive of $1,500 to sign the lease

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