The effect of an operating lease on the income distribution schedule: checked a. is non-existent b. affects only the lessee's income. c. affects only the lessor's income. d. affects the amount of income or distribution of income between the noncontrolling and controlling interests.

The effect of an operating lease on the income distribution schedule: checked a. is non-existent b. affects only the lessee's income. c. affects only the lessor's income. d. affects the amount of income or distribution of income between the noncontrolling and controlling interests.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Want to the answer

A: Step 1: Definition of Lease:A lease can be explained as a contract between two parties in which one…

Q: Describe the effect of a “bargain-purchase option” onaccounting for a capital lease transaction by a…

Q: The amount of gain (loss) on sale and leaseback transaction is: Group of answer choices The…

A: Sales and lease back transaction refers to the transaction where an asset is sold by the seller to a…

Q: Which of the following statements is most CORRECT? Oa. A key difference between a capital lease and…

A: A lease is a legal agreement in which one party gives another party the use of real estate or land…

Q: Describe and demonstrate how the lessee accounts for a finance lease and the lessor accounts for a…

Q: a sale-leaseback transaction, the right-of-use asset is computed as: a. Rights retained by the…

A: Leaseback refers to the concept when an asset sold by an entity is leased back from the buyer.

Q: Under ASPE, the lessor is required to expense any direct costs associated with a lease up front.…

A: Accounting Standards for Private Enterprises Accounting Standards for Private Enterprises is an…

Q: A lessee records a lease obligation with a credit to the obligation in the amount of . the total…

A: At the commencement date, a lessee initially measures the lease liability (obligation) at the…

Q: What do you think is the main difference of accounting for lease on the part of the lessee and…

A: Lease is regarded as the contract between two parties those to use the asset of the owner by another…

Q: One of the following statements is false: a. If the underlying asset will not revert to the…

A: A lease is a contract which provides the right to use an asset for consideration for a specified…

Q: A lessor will record interest income if a lease is classifi ed as:A . a capital lease.B . an…

A: Introduction: Leasing is a mechanism by which the company may receive certain capital assets for…

Q: Does a lessee have an option not to separate lease and non lease components?

A: Lease: A lease or a lease agreement is a binding contract between two parties that dictates…

Q: Risks and benefits of ownership transfer to the lessee with an operating lease. true false

A: Under an operating lease, ownership risks and benefits are not transferred to the lessee.

Q: When a lease modification results in partial termination of a lease, the change shall be accounted…

A: Answer is option D) The increase (decrease) in lease liability as a result of the lease modification…

Q: What are the two subsequent measurement for financial asset? Who are part of the contract of lease

A: The financial assets is the kind of liquid assets that gets its value from the right of the contract…

Q: Identify the CORRECT statement regarding the effect of lease on return on capital employed. Select…

A: Taking assets on lease is the best ways to save money which was supposed to be blocked if purchased…

Q: distinguish between a fi nance lease and an operating lease from the perspectives of the lessorand…

A: Difference between a finance lease and an operating lease from the perspectives of the lessorand the…

Q: If a lease does not transfer control of the asset over the lease term, the lessor will generally…

A: Sales-type lease enables the renter to use an asset temporarily while accounting for it as sold…

Q: What is the reason for excluding variable lease payments from the measurement of the lessee’s lease…

A: Under IFRS 16, In lease payments there are two types of payments. One is fixed and other is variable…

Q: ect of an operating lease on the income distribution schedule: a. is non-existent. b. affects…

A: Lease - Contracts or documents that transfer property from one party to another for a predetermined…

Q: Describe the accounting for leases by lessors.

A: There are mainly 2 types of lease: 1. Finance and 2. Operating Finance lease is a lease where…

Q: Explain Nonlease Components of Lease Payments.

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: What are the criteria for classifying a lease as operating or capital? Why is there a difference…

A: Criteria for classifying a lease as operating or capital: There are five different types of leasing…

Q: is the basic concept of “substance over form” influences lease accounting? Explain.

A: Lease:A lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: Assume a lessee leases equipment and insists on terms that qualify it as an operating lease, barely…

A: In simple term lease means it was a specific contract or agreement between the two parts to use the…

Q: Under a capital lease: Select one: O a. The lessee report assets on balance sheet O b. None of the…

A: Lease means giving out the assets by the lessor to the lessee to use that asset in return for a…

Q: Explain the Remeasurement of the Lease Liability...

A: Lease Liability: In order to determine the lease liability, lease payment information should be…

Q: Under an operating lease: a) the lessee does not obtain substantially all the benefits and risks…

A: Introduction:- A lease is an agreement whereby the lessor give right to use an asset to the lessee…

Q: Explain the distinction between a direct-financing leaseand a sales-type lease for a lessor.

Q: 9. Which of the following statements is not true. (A) Capitalized leases should be reported on the…

A: A lease is a contract between a property owner and someone who wishes to use their asset. In a lease…

Q: What are the differences between a direct-financing and a sales-type lease for a lessor? Why would a…

A: First of all, let us understand the concepts of lessor and lessee. So essentially, a lessor is de…

Q: Which of the following is not one of the classifications for leases from the lessor’s viewpoint?…

A: Operating Leasing- Operating lease the right related to the asset is not transferred to the…

Q: In calculating the amortization of a leased asset, the lessee should subtract a Select one: a.…

A: Amortization- Amortization refers to spreading payments over manifold periods. The word is used for…

Q: The difference of gross investment in the lease and net investment in the lease of the lessor is?…

A: Solution: Gross investment in lease: The sum of 1. The lease payments receivable by a lessor under a…

Q: Under the FASB old lease standard,

A: Capital lease which is now also known as finance lease resembles financed purchases , the…

Q: If the gains or losses from the fluctuation in the fair value of the residual accrue to the lessor,…

A: Lease accounting is the accounting to adjust the transaction where a fixed asset is taken on rent…

Concept explainers

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.

Question

The effect of an operating lease on the income distribution schedule: checked

a.	is non-existent
b.	affects only the lessee's income.
c.	affects only the lessor's income.
d.	affects the amount of income or distribution of income between the noncontrolling and controlling interests.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What are the ways in which the accounting for the lease is affected?
What is the treatment of unguaranteed residual value in determining the cost of sales under a sales type lease? It is deducted from the cost of leased asset at gross amount. It is ignored. It is deducted from the cost of leased asset at its present value. It is added to the cost of leased asset.
Compare the way a purchase option that is reasonably certain to be exercised and a lessee-guaranteed residual value are treated by the lessee and lessor when determining lease payments.
Describe the lessor's accounting for a direct financing lease.
Which of the following is true about lease incentives?a. It forms part of the lease liability and right of use asset when the amount is actually receivedb. It forms part of the lease liability when the amount is still receivablec. It forms part of the lease liability and right of use asset when the amount is still receivabled. None of the choices
In a sale-leaseback transaction, the lease liability is equals to: A. PV of lease payments accruing to the lessor B. PV of lease payments accruing to the lessor plus any additional financing C. PV of lease payments accruing to the lessor less any prepayments D. PV of lease payments accruing to the lessee
An increase in interest income recognized for the period on a lease agreement will have the effect of reducing the unearned revenue account for the lessor. Select one: True False
Distinguish between a financing lease and an operational lease from the lessee's standpoint.
The methods of accounting for a lease by the lessor are Select one: a. operating and finance lease methods. b. none of these. c. operating and leveraged lease methods. d. operating, sales, and finance lease methods. Clear my choice
What are executory costs? How are they accounted for by the lessee in a capital lease when paid by the lessee? When paid by the lessor? Explain.
Explain the differences in revenue recognition for the lessor in a sales-type lease, a direct financing lease, and an operating lease.
c) A lessor expects some benefits from a lease contract. Explain some benefits.