Essay
Initial measurement of right-of-use asset and lease liability
Larry Co.leases a fleet of vehicles to Curly Co. for 5 years. The annual lease payment, due at the beginning of the year is $ 75,000 and the rate implicit in the lease is 8%. Curly Co. records leases under IFRS 16. What is the initial journal entry to set up the lease on Curly Co.'s books?
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