For the Following Lease, Determine the Amount the ROU Asset

question 14

Multiple Choice

For the following lease, determine the amount the ROU asset will be initially measured at. $\begin{array}{|l|l|}\hline \text { Annual payment (due at end of year) } & \$ 23,104 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental borrowing rate } & 10 \% \\\hline \text { Implicit rate (not readily determinable by lessee) } & 8 \% \\\hline \text { Unguaranteed residual value } & \text { NA } \\\hline \text { Guaranteed residual value } & 20,000 \\\hline \text { Expected payout under guarantee } & 20,000 \\\hline\end{array}$

• A)75,164
• B)78,636
• C)100,001
• D)105,859

---

Definitions:

Quality Circles

Voluntary groups of workers who meet regularly to discuss workplace issues and to propose solutions for improvements in quality and efficiency.

Organizational Behaviour

The attitudes and behaviours of individuals and groups in organizations.

Organizational Surveys

Tools used by companies or institutions to gather feedback and insights from employees on various aspects such as workplace culture, satisfaction, and engagement.

Change Agents

Individuals or entities that act as catalysts for change within an organization or community, often aiming to improve processes, behaviors, or outcomes.