For the Following Lease, Determine the Amount the ROU Asset

question 32

Multiple Choice

For the following lease, determine the amount the ROU asset will be initially measured at.
$\begin{array}{|l|l|}\hline \begin{array}{l}\text { Annual payment (due at commencement date of } \\\text { lease) }\end{array} & \$ 23,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental borrowing rate } & 10 \% \\\hline \text { Implicit rate (readily determinable by lessee) } & 8 \% \\\hline \text { Unguaranteed residual value } & \text { NA } \\\hline \text { Guaranteed residual value } & 20,000 \\\hline \text { Expected payout under guarantee } & 14,000 \\\hline\end{array}$

• A)93,792
• B)103,792
• C)107,794
• D)108,759

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Definitions:

Photographic Gun

A device designed in the early history of photography to capture images quickly, resembling the operation of a gun.

Étienne-Jules Marey

A French scientist and chronophotographer, whose work is significant in the development of motion pictures.

Eadweard Muybridge

An English photographer important for his pioneering work in photographic studies of motion and early work in motion-picture projection.

Public Exhibition

The act of showing artworks, films, or other forms of creative output to the general public in galleries, theaters, or other accessible spaces.