Which of the following is NOT a correct statement of one of the lease classification test for the lessee? If the lease transfers ownership of the property to the lessee, it will be classified as a finance lease If the lease contains a bargain purchase option, it will be classified as a finance lease If the lease term is equal to or more than 75% of the estimated economic life of the leased property, it will be classified as a finance leas If at the end of the lease termthe leased property has an alternative use to the lessor, this lease is classified as a finance lease

Q: Each period of a finance lease, the lessee records a lease expense that includes which of the…

A: The objective of the question is to identify the components that are included in the lease expense…

Q: Lease 1 does not contain a bargain purchase option, but the lease term is equal to 90 percent of the…

A: A lease is defined as a contractual agreement incorporated between two business entities where one…

Q: ( How does a lessee record initial direct costs for an operating lease? (1 O They are expensed when…

A: An operating lease is a type of lease agreement wherein the lessee (the user) gains the right to use…

Q: Under IFRS: lessees and lessors recognize right-of-use assets. lessees always use the operating…

A: The correct answer is “lessors do not distinguish between sales-type and direct financing lease”.

Q: f the lessor meets any one of the five Group I criteria, then the lessor classifies the lease as…

A: The question is asking us to identify the type of lease based on the criteria met by the lessor. In…

Q: Under IFRS: lessees may use alternative measurement bases (e.g., revaluation accounting) for the…

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

Q: At the beginning of a Type B lease, the lessor will record what asset and liability, if any?

A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a…

Q: On the balance sheet, the right-of-use asset under an operating lease is ________. Group of answer…

A: The question is asking about the treatment of the right-of-use asset under an operating lease on the…

Q: Which of the following is a criterion for a lease to be classified as a finance lease in the books…

A: A lease is a contract in which a landlord (the lessor) offers the tenant (the lessee) the right to…

Q: A lease agreement may include all of the following types of payments. Which is not included in the…

A: A lease is a contract granting an entity the right to use a specified asset for a specified period…

Q: Lease 105 does not contain a purchase option but the present value of the lease payments equals the…

A: There are two types of finance lease and operating lease. Finance lease is a lease which satisfies…

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: The discount rate influences virtually every amount reported in connection with a lease by both the…

A: The lessor’s discount rate is the effective interest rate when determining the present value of…

Q: When a lease qualifies as a finance lease, what amount is initially recorded as the cost of the…

A: Solution Concept In case of finance lease , The initial cost of right of use asset include…

Q: Which one of the following would normally lead to a lease being classified as an operating lease?…

A: Solution: "At the inception date of the lease agreement, the present value of the total lease…

Q: What is included in the value of the lessor's lease receivable? (l O the lease payment plus the…

A: Lease: Lease is an aggreement between lessee and lessor where lessor gives his assets to lessee for…

Q: On the balance sheet, the lease liability is measured as ________. Group of answer choices the…

A: The objective of the question is to identify how the lease liability is measured on the balance…

Q: lease i

A: A finance lease is a type of lease agreement in which a finance company is typically the legal owner…

Q: calculate the value of the lease liability at the commencement in the lease?

A: Follow-up question. Given in the question: Rate of implicit in the lease known by lessee = 6.02%…

Q: Revenue for a direct financing lease is calculated as ________. Group of answer choices None of the…

A: In a direct financing lease, the lessor provides financing to the lessee for the acquisition of an…

Q: Which one of the following is an indicator that a lease is an operating lease for accounting…

A: Option 1: This option is incorrect because if the lease transfers ownership of the asset to the…

Q: Regarding a basic capital (finance) lease for a lessee, which of the following statements is…

A: Lease liability is a term used in accounting to describe the financial obligation a company has…

Q: Which of the following is a criterion for classifying a lease as a finance lease by the lessee?

A: The correct answer is: (A) The lease term is equal to 75% or more of the estimated economic life of…

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.