50.1K

Verified Solution

Link Copied!

Starboard Industries enters into a lease agreement with Bumble Motors to lease an automobile with a fair vakue of $75.000 under a5-year lease on December 20, 2018 The lease commences on Janary 1. 201 and Startrd will return the automobile to Bumble on December 31, 2023 The automobile has an estimated useful e of 7 yeans Starboard made a lease payment of S10.600 on December 20, 201 in addiion the lease agreemont stipultes annual payments of $10.600, due on January 1 of 2019, 2020, 2021, 2022, and 2023 The inplicit rate of the lease is 7% and is known by Starboard Starboard guarantees aresidual vale of 3000 ad incus ia drect costs of $1.300 Assuming that this is classified as an operating lease what is the value of the right- of-use asset at the lease's commencement? O A. $43.462 OB. 558.404 OC. $44.762 D. S60 543 Starboard Industries enters into a lease agreement with Bumble Motors to lease an automobile with a fair value of $75,000 under a 5-year lease on December 20, 2018. The lease commences on January 1. 2019. and Starboard annual payments of $10,600, due on January 1 of 2019, 2020, 2021, 2022, and 2023 The implict rate of the lease is 7% and is known by Starboard Starboard guarantees a residual value of $3.000 and incurs initial direct costs of $1,300 Assuming that this is classiled as an operating lease what is the value of the right - of - use asset at the lease's commencement? OA. S43.462 OB. $58404 OC. $44.762 O D. S60,543

Answer & Explanation Solved by verified expert

See Answer