Verizon Communications Inc. provides the following footnote relating to adoption of the new lease accounting standards (Topic 842) in its 10-Q report for the quarter ended March 31, 2019. The

Verizon Communications Inc. provides the following footnote relating to adoption of the new lease accounting standards (Topic 842) in its 10-Q report for the quarter ended March 31, 2019. The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 842 were as follows: Adjustments ($ millions) At Dec. 31, 2018 due to Topic 842 At Jan. 1, 2019 Prepaid expenses and other $7,089 $(428) $6,661 Operating lease right-of-use assets – 30,213 30,213 Other assets 15,232 (2,662) 12,570 Accounts payable and accrued liabilities 22,501 (3) 22,498 Other current liabilities 8,239 (2) 8,237 Current operating lease liabilities – 3,810 3,810 Deferred income taxes 33,795 139 33,934 Noncurrent operating lease liabilities – 24,964 24,964 Other liabilities 13,922 (1,815) 12,107 Retained earnings 56,605 533 57,138 Noncontrolling interests 2,035 1 2,036 Rent expense for operating leases is recognized on a straight-line basis over the term of the lease and is included in either Cost of services of Selling, general and administrative expense in our condensed consolidated statements of income, based on the use of the facility on which rent is being paid. is the amount of the right-of-use asset the company added to its balance sheet upon adoption of the new standard? $Answer million Assume the right-of-use assets had a weighted average lease term of 12 years. Approximate the effect the operating leases had on Verizon’s income statement in Q1 2019. Round to the nearest million. The rental expense in Q1 would be $Answer million is the amount of the total operating lease liabilities the company added to its balance sheet upon adoption of the new standard?

Do you need us to help you on this or any other assignment?


Make an Order Now
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.