In computing the present value of the lease payments, the lessee should a.use both its incremental borrowing rate and the implic
it rate of the lessor, assuming that the implicit rate is less. b.use the implicit rate of the lessor, assuming that the implicit rate is known to the lessee. c.use its incremental borrowing rate in all cases. d.use the implicit rate if it is less than then lessee’s incremental borrowing rate.
This payment is equivalent to the regular rent formally specified by the same contract that grants the member the rights for a specified time. It used both the nominal lending rate and the lessor's conditional value, which provides the lower implied rate, and wrong choices can be described as follows:
In option b, It is wrong because in this we assume the implicit rate is lessee.
Option c and Option d both were wrong because It doesn't use the Iterative credit rate.
WAN (Wide Area Network), is a computer network that joins several local networks, although their members are not all in the same physical location.
LAN (Local Area Network) is a network of computers that cover in a small area for example a house, an apartment or a building. One part of the topological definition is the physical topology, which is the actual arrangement of the cables or media.
MAN (metropolitan area network) is a network of computers that interconnects users with computer resources in a geographic area or region larger than area covered by a large local area network (LAN)
PAN (Personal Area Network.) Is a network used to connect different personal computer devices centered on an individual person workspace.