What Is the Proper Accounting Treatment to Record a Variable

question 43

Multiple Choice

What is the proper accounting treatment to record a variable lease payment indexed off the CPI?

• A) Calculate the lease liability based on expected payments over the life of the lease after considering increases in the CPI.
• B) Calculate the lease liability based on the base payment and debit an additional expense in subsequent years based on the change in the CPI.
• C) Record the lease liability based on highest annual increase in the CPI for the past 10 years.
• D) Capitalize and depreciate the increased payments based on CPI indexing.

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A mental disorder characterized by a relentless gloomy mood or lack of enthusiasm for activities, resulting in major impairment in daily routines.

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