Under the Provisions of ASC 842, Which of the Following

question 30

Multiple Choice

Under the provisions of ASC 842, which of the following is not required in a lease modification when the lease payments are required to be remeasured?

• A) Any variable lease payments that are based on a rate or index will need to be remeasured.
• B) The total lease liability is remeasured
• C) The remeasured lease must be subsequently recorded as an operating lease
• D) The lessee is generally required to use an updated discount rate.

---

Definitions:

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, that has no direct correlation to the market value.

Corporate Existence

The state of being recognized as a legal entity that is separate from its owners, enabling the corporation to own assets, incur liabilities, and enter into contracts.

Business Combination

A transaction or other event in which an acquirer obtains control of one or more businesses.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.