What is the treatment of unguaranteed residual value under a dealer’s or manufacturer’s lease? a. Unguaranteed residual value is deducted from the cost of the leased asset at present value, to derive cost of sales. b. Unguaranteed residual value is deducted from the cost of the leased asset at absolute amount, to derive cost of sales. c. The unguaranteed residual value is completely disregarded. d. The unguaranteed residual value is added to the cost of the leased asset at present value, to derive cost of sales.

Q: A machine is leased and the Present value of the minimum lease payments amounts to the fair value of…

A: A. In the Balance Sheet as a fixed asset only:This option doesn't account for the liability to the…

Q: The lessee recognizes a loss on finance lease when the fair value of the leased asset is _______…

A: Solution: When at the end of lease term, fair value of leased asset is lesser than the guaranteed…

Q: Which of the following statements is true? OA. The right-of-use asset is increased by prepaid lease…

A: A lease is the type of source of finance where one party (lessor) allow another party to use the…

Q: Which of the following statements is true? Group of answer choices The right-of-use asset is…

A: The objective of the question is to identify the correct statement about the calculation of the…

Q: If the residual value of a leased asset is guaranteed by a third party:

A: A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of…

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: True or false explain

A: A lease is a contractual agreement between the lessor and lessee. The owner is paid by the user…

Q: After a sale-leaseback, The buyer-lessor record depreciation expense on the leased asset. the…

A: After a sale-leaseback transaction, the seller-lessee will not record depreciation expense on the…

Q: Leasing can be beneficial due to: A Tax advantages for both lessors and lessees. B Guaranteed asset…

A: A lease refers to an agreement between two parties in which one party agrees to give the right to…

Q: Which of the following should be included by the lessee in determining the amount of the…

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

Q: A sale and leaseback arrangement does which one of the following? Select one: O a. allows the lessor…

A: Sale and leaseback transactions: under this transaction the lessor sold the goods to the lessee and…

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: A(n) is a contract for the use of an asset for a period of time without having to buy the asset. Oa.…

A: lease: lease is a contract  to buy the right to use the asset for particular period of time on…

Q: For a lessor, the leased asset appears on the balance sheet and continues to be depreciatedwhen the…

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

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.