The Corbelle firm leases premises for a lease term of 6 years, shorter than their useful life; the right-of-use asset, with a cost of 150,000, is depreciated on a straight-line basis over that term. After 3 years, a decrease in future lease payments leads to a reduction of the lease liability by 9,000 (given amount). The firm assumes a straight-line allocation of the new balance over the remaining term. Determine the adjusted carrying amount of the right-of-use asset and the depreciation charge for the fourth year.
- Cost of the right-of-use asset
- 150,000
- Lease term
- 6
- Years elapsed
- 3
- Reduction of the lease liability
- 9,000