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Please provide detailed solution to get the answer. Present it please in excel with explanations for me to further understand. Thank you so much! PROBLEM 1: On January 1, GEN enters into a contract with LORD for the sale of a high-end security scanner for 630,000. The contract includes a put option the obliges GEN to repurchase the scanner machine from LORD for 567,000 on or before December 31. The market value is expected to be 495,000 on December 31. LORD pays GEN 630,000 on January 1. The transaction should be accounted for as a: A. Sale B. Lease C. No sale/lease

Please provide detailed solution to get the answer. Present it please in excel with explanations for me to further understand. Thank you so much! PROBLEM 1: On January 1, GEN enters into a contract with LORD for the sale of a high-end security scanner for 630,000. The contract includes a put option the obliges GEN to repurchase the scanner machine from LORD for 567,000 on or before December 31. The market value is expected to be 495,000 on December 31. LORD pays GEN 630,000 on January 1. The transaction should be accounted for as a: A. Sale B. Lease C. No sale/lease

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please provide detailed solution to get the answer. Present it please in excel with explanations for me to further understand. Thank you so much!

PROBLEM 1:

On January 1, GEN enters into a contract with LORD for the sale of a high-end security scanner for 630,000. The contract includes a put option the obliges GEN to repurchase the scanner machine from LORD for 567,000 on or before December 31. The market value is expected to be 495,000 on December 31. LORD pays GEN 630,000 on January 1. The transaction should be accounted for as a:

A. Sale

B. Lease

C. No sale/lease

D. Cannot be determined

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