Multiple Choice
Alpha Co has just acquired Beta Co. Beta Co was the lessee for several operating leases on various buildings. Because of market conditions, these leases are worth $100,000 more to the lessee on the date of acquisition. How should Alpha Co account for this?
A) Recognize a $100,000 gain on the lease contract
B) Recognize a $100,000 intangible asset related to the lease contract
C) Recognize a $100,000 liability on the contract
D) Don't recognize any amount related to the change in value for the lease contract
Correct Answer:
Verified
Correct Answer:
Verified
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