微信扫一扫
实时资讯全掌握
| Dahlia, Inc. signed a lease to rent equipment on July 1, year 1. On January 1, year 3, Dahlia decides that the equipment is no longer needed, and the company pays a $20,000 penalty to cancel the lease. How should the cancellation be reported on Dahlia’s financial statements? A. Amortize the loss over the remaining term of the lease. B. Defer recognition of the loss until the end of the normal lease term. C. Compare the termination costs to the present value of avoidable lease payments and recognize the difference as a loss at the date the equipment ceases to be used. D. Recognize the cost of termination at the fair value at the date the agreement is terminated. |