743201-21-9Q

The following are some of the characteristics of an asset available for lease. (Click the icon to view the lease characteristics.) Required a. Determine the amount of lease payment that the lessor would require to lease the asset. b. Compute the lessor's net investment in the lease at initial recognition. c. Compute the value of the lessee's ROU asset at initial recognition. d. Compute the lessee's lease liability at initial recognition. Requirement a. Determine the amount of lease payment that the lessor would require to lease the asset. Begin by calculating the present value of the residual value and the value to be recovered by the lessor from the annual lease payments. (Use a financial calculator for all present value computations. Enter your final answers as positive amounts rounded to the nearest whole dollar.) Present value of guaranteed residual value Value to be recovered by annual lease payments Determine the amount of lease payment that the lessor would require to lease the…

If the lease in a sale-leaseback transaction meets one of the five lease tests and is therefore accounted for as a finance lease, who records the asset on its books and which party records interest expense during the lease period?   Party recording theasset on its books  Party recordinginterest expense Seller-lessee Purchaser-lessor Purchaser-lessor Purchaser-lessor Seller-lessee Seller-lessee Purchaser-lessor Seller-lessee

Which of the following statements is correct in accordance with AASB 16 Leases? Group of answer choices A lease contract, or part of a lease contract, conveys the right to transfer ownership of an asset for a period of time in exchange for consideration. Payments that are made by a lessee at commencement date are included in the initial amount recognised for the lease liability. Payment for executory costs reimbursed by the lessee after being paid by the lessor on behalf of the lessee are included in the calculation of lease payments. Variable lease payments may be increased or decreased during the lease term because of changes in facts and circumstances occurring after the asset is made available to the lessee to use, other than the passage of time.

Which of the following is /are usually correct regarding operating leases? I. The lessor will recoup the entire cost of the leased asset during the term of the original lease. II. The leases are fully amortized. III. The lessee has an obligation under the cancellation option to cancel the lease contract prior to the expiration date. IV. The lessor is responsible for insuring the leased asset. Select one: a. I and III only b. II, III, and IV only c. III and IV only d. IV only

Which one of the following definitions is/are correct? I. A lease between a lessor and the manufacturer of the leased asset is a direct lease. I. A leveraged lease is where the lessor has borrowed about 80% of the asset's cost while the lender owns the asset. I. The lessor is the party which uses the leased asset. IV. A financial lease is a capital cancellable contractual agreement between two parties. V. A sale and leaseback is the sale of an asset by Firm A to Firm B followed by the lease of that asset by Firm C. Select one: O a. I and Il only O b. Il only O . I, Il and IV only O d. I. only O e. Il and IV only

A lessee should classify a lease transaction as a finance lease if it is noncancelable and one or more of the five classification criteria are met. Otherwise, it is an operating lease. What are these criteria? Provide 2-3 reasons why a company would choose to lease an asset versus purchasing?

A lease agreement whereby the lessee recognized rent expense which is always equals to the rent income recognized by the lessor at a given period of time. A. Operating lease B. Finance lease C Terminating lease D. Sale type lease

PROBLEM 1: TRUE OR FALSE 1. According to PFRS 16 Leases, a lessee shall classify each of its leases into a finance lease or an operating lease. 2. A contract is (or contains) a lease if it conveys the right to control the use an identified asset for a period of time in exchange for consideration. 3. An underlying asset is not considered an identified asset for the purpose of applying the accounting requirements of PFRS 16 if the supplier's substitution right is not substantive. 4. The current view on accounting for leases by lessees is that all leases are 'on-balance sheet' items, with very minimal exceptions. 5. In most leases, a lessee recognizes an asset and a liability at the commencement date. 6. According to PFRS 16, lease payments include any amount to be paid for purchase options that are reasonably certain to be exercised and amounts that are expected to be paid under residual value guarantees. 7. The lessee always uses its incremental borrowing rate in determining the present…

Part 1: Finance leases and operating leases are the two classifications of leases described in FASB pronouncements from the standpoint of the lessee. Instructions a.    Describe how a finance lease would be accounted for by the lessee both at the commencement of the lease and during the first year of the lease, assuming the lease transfers ownership of the property to the lessee by the end of the lease. b.    Describe how an operating lease would be accounted for by the lessee both at the commencement of the lease and during the first year of the lease, assuming equal monthly payments are made by the lessee at the beginning of each month of the lease. Do not discuss the criteria for distinguishing between finance leases and operating leases. Part 2: Sales-type leases and operating leases are two of the classifications of leases described in FASB pronouncements from the standpoint of the lessor. Instructions Compare and contrast a sales-type lease with an operating lease as follows. a.…

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Identify the lease classifications for lessors and the criteria that must be met for each classification. What is the relevance of revenue recognition criteria for lessor accounting for leases?

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9. Baa Co. enters into a lease of commercial space. The contract specifies a non-cancellable term of five years and a two-year, market-priced commencement, Baa Co. makes significant leasehold improvements with a useful life of ten years. Baa Co. determines that the economic benefits of the leasehold renewal option. Before the lease improvements can only be realized through continued of the leased property. At lease commencement, Occupancy b. 5 years c. 7 years d. 10 years a. 2 years Which of the following statements is incorrect regarding the accounting for lease liabilities? Lease liabilities are subsequently measured at amortized cost, adjusted for lease modifications and reassessments. b. Subsequent lease payments are apportioned to both the interest and the principal balance of the lease liability. c Periodic interests reflect a varying rate of interest on the remaining balance of the lease liability. d. Periodic interests reflect a constant rate of interest on the remaining…

Knowleage Check UT f the option is reasonably certain to be exercised, how does the inclusion of a provision that gives the lessee the option to purchase the lease asset during the ease term at a specified exercise price impact that accounting for that lease? Note: Select all that apply. Check All That Apply The lessor must classify the lease as a sales-type lease. The lessee has the option of classifying the lease as an operating lease. The lease term is assumed to end on the date that the option is expected to be exercised. In the present value calculations, the lessor adds the present value of the exercise price to the present value of the periodic lease payments to determine the amount recorded as the lease receivable.

Which of the following statements characterizes a sales-type lease? The lessor recognizes only interest revenue over the life of the asset.. The lessor recognizes a dealer profit at lease inception and interest revenue over the lease term. The lessor recognizes a dealer profit at lease inception and interest revenue over the useful life. The lessor recognizes only interest revenue over the lease term.

​If, as part of the accounting for a​ lease, the lessee debits an asset and credits a​ liability, then the lease must be​ a(n):     A. finance lease.   B. operating lease.   C. operating lease or finance lease.   D. none of the above. thanks for help