Final Flashcards
1
Q
What are deferred lease credits?
A
When a lessor gives credits to the lessee to offset construction costs.
2
Q
How are deferred lease credits expensed?
A
They are usually amortized as a reduction of lease expense over the term of the lease.
3
Q
How do you estimate avg interest on interest bearing debt?
A
Interest expense
+
Capitalized Interest
=Interest incurred
/
Avg debt(long term debt)
= Implied Interest Rate
4
Q
A
