A salesperson is selling a leased commercial property. what will happen to the lease after the sale is consummated ? A. the lease is assigned to the new owner ? b. the mease expires and the tenanr must move.? c . the tenant and the new owner must negatiate a new lease ? d. the new owner has the option of canceling the lease or accepting the lease .

A salesperson is selling a leased commercial property. what will happen to the lease after the sale is consummated ? A. the lease is assigned to the new owner ? b. the mease expires and the tenanr must move.? c . the tenant and the new owner must negatiate a new lease ? d. the new owner has the option of canceling the lease or accepting the lease .

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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?
* Your answer is incorrect. When a company sells property and then leases it back, any gain on the sale should usually be deferred and recognized as income over the term of the lease. O recognized at the end of the lease. Orecognized in the current year. O recognized as a prior period adjustment.
The answer is incorrect. Can you at least calculate the value of the lease liability at the commencement in the lease?
Which one of the following is an indicator that a lease is an operating lease for accounting purposes? Multiple Choice The lease transfers ownership of the asset to the lessee by the end of the lease term. The lessee will probably exercise the option to purchase the leased asset. The lease term represents a minor portion of the leased asset's economic life. The residual value plus the present value of the lease payments exceeds the value of the leased asset. The lessor has no use for the asset other than to lease it to the present lessee due to the specialized nature of that asset.
In the lease versus buy decision, leasing is often preferable Oa. because the lessee may have greater flexibility in abandoning the project in which the leased property is used than if the lessee bought and owned the asset. Ob. because, generally, no down payment is required, and there are no indirect interest costs. Oc. because it has no effect on the firm's ability to borrow to make other investments. Od. because the lessee owns the property at the end of the least term. Oe. because lease obligations do not affect the firm's risk as seen by investors.
What would be the advantages and disadvantages of leasing assets instead of owning them? How would the financial statements be different in a leasing situation (for both operating leases and finance leases) for the lessee? What about the lessor (including all of the types)? What disclosures should be made by lessees and lessors related to future lease payments?
The lease is silent and the tenant no longer wants to stay in lease. They find another individual to move in and pay the rent. The new tenant agrees to all the old terms and conditions of the full lease and agrees to make all payments. This is called a(n) 2 (one word)
Please do not give solution in image format ?
Please help me. Thankyou.
A lessor signs a lease agreement with a lessee. The lease term is only 50% of the economic life of the asset, there is no bargain purchase, ownership does not transfer, and the asset is not specialized. The present value of lease payments is 92% of the asset’s fair value. This is a(an) _________ lease to the lessee and lessor, respectively (enter the number that represents the correct answer). To the lessee To the lessor operating lease operating lease operating lease sales-type lease finance lease operating lease finance lease sales-type lease
5)
When is a home considered under contract? When the buyer qualifies for a loan When the seller and buyer have signed the offer When the buyer signs the seller's offer When the 10-day option period is over