meet_ex3


Exhibit 3: Discounted Expected Cash Flows Per Concepts Statement no. 7
  Asset A Asset B Asset C Asset D Asset E Asset F
Contractual (promised) cash flow $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
Expected cash flow $60,000 $50,000 $60,000 $46,000 $60,000 $55,445*
Adjustments to reflect risk premium   $200   $1,500   $1,400
Adjusted cash flows $60,000 $49,800 $60,000 $44,500 $60,000 $54,045*
Present value at 6% (risk-free rate) $60,000 $49,800 $42,300† $31,372†† $49,170 $44,314*
* See exhibit 4
† $60,000 5 .705
†† $44,500 5 .705
$10,000 5 4.917

SPONSORED REPORT

Solving the lease accounting challenge

The challenges of the new lease accounting standard have been pervasive to say the least. In this free, independently-written report, you'll learn effective adoption strategies as well as resources for easing the transition to the new standard.

FEATURE

Tackling TCJA changes this tax season

Return preparers must be ready for how the Tax Cuts and Jobs Act has modified many common features of individual and business returns.