Which of the following statements are false under a sale a leaseback transaction? I. If a sale and leaseback transactions results in a finance lease, any excess of proceeds over the carrying amount shall not be immediately recognized as income by a seller-lessee. Instead, it shall be deferred and amortized over the lease term. II. If the sale price is established at fair value under an operating lease, any gain or loss shall be deferred and amortized over the period which the asset is expected to be used. I only II ONLY BOTH I AND II NEITHER I OR II

Q: Of what significance is (a) an unguaranteed and (b) a guaranteed residual value in the lessor's…

A: The amount to be recovered by the lessor is the same whether the residual value is guaranteed or…

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

A:

Q: Which one of these statements is correct concerning leasing arrangements? I. The debt financing used…

A: 1) Incorrect: It is the debt of lessor and not the lessee. The lessor will get the title of assets…

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: xplicitly identified in the contract, it means that: a. the identified asset is never mentioned in…

A: When the asset is implicitly identified, this means asset is implied but is not directly expressed.…

Q: In a sale and leaseback transaction resulting to an operating lease, any gain or loss is recognized…

A: In a sale and leaseback transaction resulting to an operating lease any gain or loss on sale is…

Q: If the fair value of the consideration for the sale of an asset does not equal the fair value of the…

A: If the fair value of the consideration for the sale of an asset does not equal the fair value of the…

Q: Differentiate between an operating lease, acapital (or financial) lease, and a sale andleaseback…

A: Answer: The term operating lease would be significantly shorter than the rented asset’s life. And in…

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: 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: ease terms can be considered to be "significantly affected": a. when the terms are the same for…

A: Leases - It is contract between lessor and lessee wherein an asset is given to lessee in…

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: he lessor will recognized the same gross profit whether the residual value is guaranteed by the…

A: given statement 1 is about direct finance  lease . it is correct.   statement 2 about indirect costs…

Q: customer can direct the use of the asset. The asset is explicitly or implicitly identified in the…

A: Identified asset:I An asset whose fair value or market value can be calculated at particular given…

Q: lassified as a finance lease or as an operating lease.

A: In case of a financial lease only, assets or liabilities are created. In case of operating lease…

Q: 2. Which of the following statements is incorrect? An ascot

A: Answer: As per Q/A guidelines, first question has been answered. as per your request question (2)…

Q: Under US GAAP, It is possible that the lessor changes the lease classification from operating lease…

A: Operating lease gives right of use of equipment for given period of time and sale type equipment…

Q: For companies that prepare their financial statements in accordance with both U.S. GAAP and IFRS, a…

A:

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: Select one: ес

A: Step 1   A lease agreement is a contract that allows for the use of an asset without the transfer of…

Q: The effect of an operating lease on the income distribution schedule: checked a. is non-existent…

A: When one asset is given for the purpose of use to another person on rent, it is called lease. The…

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: 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: All of the following are differences with respect to the accounting for leases, under IFRS and GAAP,…

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

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: 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: A lessee should classify a lease transaction as a finance lease if it is noncancelable and one or…

A: A lease transaction refers to an agreement between two parties, the lessor and the lessee, where the…

Q: Provide correct answer for this question

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

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…

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: Statement I. When the bargain purchase option was not exercised, the lessee should record a loss…

A: The answer is stated below:             Note: Answering the first question as there are multiple…

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.