Can u help me Variable lease payments based on an indexare?a) Excluded from lease liabilityb) Included using initial indexc) Recognized as expense when incurredd) Added to equity

Explanation of Variable Lease Payments: Variable lease payments are amounts that vary based on…

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Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter19: Lease Financing

Section: Chapter Questions

Problem 1Q: Define each of the following terms: a. Lessee; lessor b. Operating lease; financial lease;...

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Similar questions

When a lessor receives cash on an operating lease, which of the following accounts is increased? A. Lease Payable B. Interest Revenue: Leases C. Lease Receivable D. Rent Revenue
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
Each period of a finance lease, the lessee records a lease expense that includes which of the following? Group of answer choices Interest expense on the lease liability, using the effective interest rate method and the discount rate it used to compute the present value of the liability at the lease commencement date; variable lease payments not included in the lease liability in the period in which the obligation for the variable payments is incurred; and changes in variable lease payments that depend on an index or rate. Neither A nor B is correct. Interest expense on the lease liability, using the effective interest rate method and the discount rate it used to compute the present value of the liability at the lease commencement date; variable lease payments not included in the lease liability in the period in which the obligation for the variable payments is incurred. Both A & B are correct.
Gross investment in the lease is equal to a. Sum of the lease payments receivable by a lessor under a finance lease and any unguaranteed residual value accruing to the lessor b. Present value of the lease payments under a finance lease of the lessor. c. The lease payments under a finance lease of the lessor d. Present value of lease payments under a finance lease of the lessor and any unguaranteed residual value.
What is the difference between a lease receivable and a net investment in the lease?
the best answer. The leaseback in a sale-leaseback transaction may be classified by the buyer/lessor as a(n): O A. finance lease. B. minimum lease. C. operating lease. D. sales-type lease. G
MCQ The effective interest method is used to? a) Amortize bond premium or discount b) Calculate tax expense c) Determine depreciation d) Calculate lease payments
opinion: Should lease payments be a current liability included in the acid-test ratio? why
The interest expense of the lessee during the year when payment is made in advanced shall be: Group of answer choices Lease liability at inception of the lease multiplied by implicit rate of interest. Total present value of lease liability after initial payment multiplied by effective rate of interest. Annul lease payment divided by implicit rate of interest multiplied by effective rate. Cost of ROUA plus PV of restoration cost multiplied by implicit rate of interest.
Define each of the following terms: a. Lessee; lessor b. Operating lease; financial lease; sale-and-leaseback; combination lease; synthetic lease; SPE c. Offbalance sheet financing; capitalizing d. FASB Statement 13; ASU 2016-02 e. Guideline lease f. Residual value g. Lessees analysis; lessors analysis h. Net advantage to leasing (NAL) i. Alternative minimum tax (AMT)
How is interest expense determined in a finance lease transaction? How does the approach compare to otherforms of debt (such as bonds payable or notes payable)?
Crystal Corporation recorded a lease payment as follows: Dr. Rent expense Cr. Cash Crystal must have a(an) Select one: a. Finance lease. b. Operating lease. c. Leveraged lease. d. Direct finance lease.

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Variable lease payments based on an index are? a) Excluded from lease liability b) Included using initial index c) Recognized as expense when incurred d) Added to equity