JMR Company Leases an Asset from KAR Company

question 173

Multiple Choice

JMR Company leases an asset from KAR Company.The rate implicit in the lease is 12% and JMR's incremental borrowing rate is 11%.JMR is aware of the implicit rate.Assuming that both rates would provide an MLP amount well below the fair value of the leased asset, the rate that JMR should use for discounting the net lease payment is:

• A)11% under ASPE and 12% under IFRS.
• B)12% under ASPE and 11% under IFRS.
• C)12% under both ASPE and IFRS.
• D)11% under both ASPE and IFRS.

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Definitions:

Large Abrasion

A significant area of skin that has been scraped or worn away due to friction or trauma.

Resurface

The process of repairing or restoring the top layer of something, such as a road, floor, or skin.

Pressure Injury

Localized damage to the skin and/or underlying tissue, usually over a bony prominence, as a result of pressure or pressure in combination with shear.

Pressure Injury

Damage to the skin and underlying tissue, usually over bony areas, resulting from prolonged pressure, often seen in bedridden patients.