Multiple Choice
Cady Salons leased equipment from SmithCo on January 1,2016,in a Type B lease.The present value of the lease payments discounted at 10% was $80,000.Ten annual lease payments of $12,000 are due at each January 1 beginning January 1,2016.Following the guidance of the new ASU,the amortization of the right-of-use asset for the reporting year ending December 31,2016,would be:
A) $ 5,200.
B) $ 6,800.
C) $ 8,000.
D) $12,000.
Correct Answer:
Verified
Correct Answer:
Verified
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