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Schwann Ltd Enters into a Non-Cancellable 5-Year Lease for Office

Question 53

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Schwann Ltd enters into a non-cancellable 5-year lease for office space in Bigtown's central business district.The building has an expected remaining life of 40 years.Schwann Ltd has been offered a free fit-out of the office as an incentive to take up the lease.The fit-out would have cost Schwann Ltd $90 000 to do itself.The benefits of the fit-out are to be recognised on a straight-line basis.The rental payments are $110 000 per annum.How would the signing of the lease and the first rental payment be recorded by Schwann Ltd?


A)
Schwann Ltd enters into a non-cancellable 5-year lease for office space in Bigtown's central business district.The building has an expected remaining life of 40 years.Schwann Ltd has been offered a free fit-out of the office as an incentive to take up the lease.The fit-out would have cost Schwann Ltd $90 000 to do itself.The benefits of the fit-out are to be recognised on a straight-line basis.The rental payments are $110 000 per annum.How would the signing of the lease and the first rental payment be recorded by Schwann Ltd? A) B) C) D)
B)
Schwann Ltd enters into a non-cancellable 5-year lease for office space in Bigtown's central business district.The building has an expected remaining life of 40 years.Schwann Ltd has been offered a free fit-out of the office as an incentive to take up the lease.The fit-out would have cost Schwann Ltd $90 000 to do itself.The benefits of the fit-out are to be recognised on a straight-line basis.The rental payments are $110 000 per annum.How would the signing of the lease and the first rental payment be recorded by Schwann Ltd? A) B) C) D)
C)
Schwann Ltd enters into a non-cancellable 5-year lease for office space in Bigtown's central business district.The building has an expected remaining life of 40 years.Schwann Ltd has been offered a free fit-out of the office as an incentive to take up the lease.The fit-out would have cost Schwann Ltd $90 000 to do itself.The benefits of the fit-out are to be recognised on a straight-line basis.The rental payments are $110 000 per annum.How would the signing of the lease and the first rental payment be recorded by Schwann Ltd? A) B) C) D)
D)
Schwann Ltd enters into a non-cancellable 5-year lease for office space in Bigtown's central business district.The building has an expected remaining life of 40 years.Schwann Ltd has been offered a free fit-out of the office as an incentive to take up the lease.The fit-out would have cost Schwann Ltd $90 000 to do itself.The benefits of the fit-out are to be recognised on a straight-line basis.The rental payments are $110 000 per annum.How would the signing of the lease and the first rental payment be recorded by Schwann Ltd? A) B) C) D)

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