Needs space has entered into a lease agreementwith wehaveit

Reference no: EM13611907

Needs Space has entered into a lease agreementwith WeHaveIt to rent space for its corporate offices. The lease isclassified as an operating lease in accordance with ASC 840, Leases(FASB statement No. 13, Accounting for Leases).

The lease entered into between NeedsSpace and WeHaveIt has a10-year lease term (as defined by the Glossary in ASC 840(paragraph 5(f) of Statement 13)), and there is no option to renewnor is ability to negotiate for renewal provided in the leaseagreement.

In addition, the lease agreement contains certain provisions thatmay require NeedsSpace to undertake certain activities and incurcertain costs at the end of the lease term. Such provisions includethe following:
1. "Lessor may require the lessee to perform general repairs andmaintenance on the leased premises."
2. "Lessor may require the lessee to remove all leaseholdimprovements such that the premise is reinstated to originalcondition."

Within the leased premises, NeedsSpace has placed into servicevarious leasehold improvements (e.g., temporary walls, HVAC,carpeting) that have economic useful lives of 10 years.

Required
1. How should NeedsSpace account for the two obligations noted asprovisions in the lease agreement?
2. A written report of 8-10 pages.

Reference no: EM13611907

Questions Cloud

An airboat with mass 436 x 102 kg including the passenger : an airboat with mass 4.36 x 102 kg including the passenger has an engine that produces a net horizontal force of 8.20

An american association of individual investors aaii survey : an american association of individual investors aaii survey found that 23 of aaii members had purchased shares of stock

An astronauts pack weighs 121n when she is on earth but : an astronauts pack weighs 12.1n when she is on earth but only 3.60n when she is at the surface of an asteroid.what is

Knowing the acceleration of the truck is 1fts2 determine a : type your question herea 5000 lb truck is being used to lift a 1000 lb boulder b that is on a 200lb pallet a. knowing

Needs space has entered into a lease agreementwith wehaveit : needs space has entered into a lease agreementwith wehaveit to rent space for its corporate offices. the lease

An astronauts pack weighs 121nwhen she is on earth but only : an astronauts pack weighs 12.1nwhen she is on earth but only 3.60 n when she is at the surface of an asteroid.1. what

Given that z is standard normal random variable compute the : given that z is standard normal random variable compute the following probabilitiesa p-1lt-zlt-0b

A system consists of three components that operate : a system consists of three components that operate independently. in order for the system to work component 1 must work

During 975 seconds a motorcyclist changes his velocity from : during 9.75 seconds a motorcyclist changes his velocity from v1x -30.3 ms and v1y 13.1 ms to v2x -26.1 ms and v2y

User Account

All Pages