Problem 5 NS Lessee Co enters a non-cancelable operating lease agreement with BC Co on...
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Problem 5 NS Lessee Co enters a non-cancelable operating lease agreement with BC Co on January 1. 2024, under which BC Co. leases a machine to NS Lessee Co. Information pertaining to the lease is provided below: - NS Lessee Co.'s lease liability on January 1, 2024 is $1,375,000 - BC Co. (lessor) will make an $7,450 cash payment to NS as a cash incentive for entering the lease. - NS Lessee Co incurred the following legal costs: o $2,100 in attorney costs due to the execution of the lease - $500 in attomey fees for legal services provided prior to the execution of the lease What is the amount of the right of use asset NS Lessee Co. will record on January 1, 2024
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