The car rental company Vectra is the lessee of a fleet of electric shuttles that it will return in 2 years while guaranteeing their residual value. At the end of 20X6, Vectra revises the amount it expects to pay under this guarantee at maturity: 5,900 instead of 50,000. The discount rate of the lease is 5 %, and the right-of-use asset has a carrying amount of 31,500. Record the remeasurement (the decrease in the right-of-use asset is posted directly to its account).
- Payment expected under the guarantee (previous estimate)
- 50,000
- Payment expected under the guarantee (new estimate)
- 5,900
- Years remaining until return
- 2
- Discount rate of the lease
- 5 %
- Carrying amount of the right-of-use asset
- 31,500