You know you are using the right file editor when such a basic task as Modify age lease does not take more time than it should. Modifying files is now a part of a lot of working processes in various professional fields, which is the reason convenience and efficiency are crucial for editing resources. If you find yourself researching guides or searching for tips about how to Modify age lease, you may want to get a more easy-to-use solution to save your time on theoretical learning. And here is where DocHub shines. No training is required. Just open the editor, which will guide you through its principal functions and features.
A workflow becomes smoother with DocHub. Take advantage of this tool to complete the files you need in short time and get your productivity to the next level!
The first example is about a modification that increases the scope of the lease and is accounted for as a separate lease. A lessee and a lessor signed a 5-year lease, where the lessee leased 10 vehicles for an annual lease payment of 1,000,000, payable at yearend. The lessees incremental borrowing rate was 6% at the commencement date. At the beginning of year 3, both the lessee and the lessor agreed to amend the original lease by adding 5 more vehicles. The lease payment for the additional vehicles was 500,000, paid annually at yearend for the remaining lease term. A similar vehicle could be leased from the market at a higher payment of 105000 on the modification date. The lessor charged the lessee a lower lease payment as a bonus for increased business between them. The Lessees incremental borrowing rate on the date of modification is 7%. Account for both the original lease and the lease modification. This is the calculation of the lease liability and the right of use asset for the
