If the present value of the future lease payments is $1,600,000 at january 1, 2018, what is the amount of the reduction in the lease liability for alt corp. in the second full year of the lease if alt corp. accounts for the lease as a capital lease?
(rounded to the nearest dollar.)

a. $414,852

b. $446,852

c. $472,350

d. $456,350

What is the equity method balance in the investment in lindman account at the end of 2018?

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.

What is the difference between the contractual interest rate and the market interest rate?