Access the FASB Accounting Standards Codification at the FASB website ( www.fasb.org ). Determine the specificcitation for accounting for each of the following items:1. Definition of a bargain purchase option.2. The calculation of the lessor’s gross investment in a sales-type lease.3. The disclosures required in the notes to the financial statements for an operating lease.4. The additional disclosures necessary in the notes to the financial statements if the operating lease has a leaseterm greater than one year.

Q: Want to the answer

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.