Which of the following lease arrangements would most likely be accounted for as a finance lease by the lessor if it is under US GAAP instead of IFRS?

Q: On 1 July 2019, Fisher Ltd decides to lease a cargo ship from XFinance Ltd. The term of the lease is…

A: Journal entry is a process of recording financial transaction with debit and credit columns along…

Q: On 1 July 2019, Fisher Ltd decides to lease a cargo ship from XFinance Ltd. The term of the lease is…

A: In order to prove that the interest rate implicit in the lease is 10 per cent, we need to find to…

Q: Burt Ltd enters into a non-cancellable 5-year lease agreement with Earnie Ltd on 1 July 2023. The…

A: In the given question we are provided with the data of Burt Ltd. We are required to calculate…

Q: Prepare Lenovo’s January 1. 2015.Journal entries at the inception of the lease.

A: Journal entry is first step of recording business transactions in the books of account. It is the…

Q: Please solve this question with your best knowledge and experience . Please don,t reject it.  Thanks…

A: Implicit Rate: It is the rate which is  not specifically shown in a business transaction . The…

Q: On Jan. 1, 2021, Sleepy Company entered into a direct financing lease. A third party guaranteed the…

A: A lessor is essentially someone who grants a lease to someone else. As such, a lessor is the owner…

Q: Company A leases computer servers to Company B for five years. At the end of the five years, Company…

A: Alternative Use:This test considers whether the leased asset has no alternative use to the lessor at…

Q: CAPBS Inc. enters into a lease agreement to acquire the use of a piece of machinery for four years…

A: Lease Contract: A contract between two parties, in which one party is the owner of the asset allows…

Q: CAPBS Inc. enters into a lease agreement to acquire the use of a piece of machinery for four years…

A: Using an asset temporarily in exchange for money is the subject of a lease between two parties. Many…

Q: 2. A company signs a lease that results in a $200 Operating Lease Asset and a $200 Operating Lease…

A: The correct choice is based on the premise that after one year, the amortization of the Operating…

Q: A company signs a lease that results in a $200 Operating Lease Asset and a $200 Operating Lease…

A: The correct answer is based on the assumption that both U.S. GAAP and IFRS would result in the same…

Q: 18. Which of the following lease arrangements would most likely be accounted for as a finance lease…

A: A finance lease is a type of equipment lease where the customer (or 'lessee') rents the asset for…

Q: Sheridan Co. leased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years,…

A: Lease payments are costs that are paid on a regular basis, most often on a monthly basis, for the…

Q: Billy Limited (lessee) and Bob Limited (lessor) enter into a finance lease agreement on 1 July 2022…

A: Lease is defined a contractual agreement incorporated between two business entities where one entity…

Q: Which of the following lease conditions would result in a finance lease to the lessee?

A: Lease   Lease is a contract between two parties where, lessee (user of the asset) pays rental amount…

Q: The details of the equipment lease agreement that Taj Corp. (lessee) recently entered into with…

A: Operating lease is short term lease where the company rent an asset for temporary use purposes. In…

Q: On January 1, 2023, Wynn Manufacturing leased a floor of a building for use in its North American…

A: The objective of the question is to determine the type of lease for the lessee, Wynn Manufacturing,…

Q: On January 1, 2020, Mountain Inc. leases a machine used in its operations. The annual lease payment…

A: Lease accounting is the process of recording the lease activities to show the financial impact of…

Q: he Arcade Company entered into a 10 year lease under which it made payments of R26 720 annually in…

A: Lease is type of arrangement where the owner gives the right to use the assets during the given…

Q: Blue Company is recording a capital lease (usually called a finance lease under IFRS) and is aware…

A: When capital lease is recorded in the books of accounts by lessee as per IFRS, then he is supposed…

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…