Lease Problem
Catherine's Internet Café (CIC) enters into a new operating lease for a 10-year term at a monthly rental of $1,500. To induce CIC into the lease, the lessor agreed to a free-rent period for the first 12 months.
Required:
1. Determine the amount of lease expense, if any, that CIC would recognize in the first month of the lease.
2. Identify the IASB pronouncement that supports your answer.