Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation. The nature of lease transaction.

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Answer 1

Question

Chapter 10, Problem 20E

1.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

2.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

3.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

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Keeping in view the IAS-17, classify the following transactions with reasons into operating lease or finance lease: LB Limited has obtained a generator for official lease for 2 year period whose useful life is 5 years. The C Ltd. has acquired an asset on lease the ownership of which will be transferred to the company at the end of lease term. iii.The D Itd. has acquired an asset on lease with an option to buy it at the end of lease term at scrap value. iv The Z Ltd. has acquired an asset on lease for 9 years. The economic life of the asset is 10 years. The company has no intention to purchase it at the end of lease term. vX Ltd. has acquired an asset with annual lease payment of Rs. 50,000 for ten years whereas the fair value of the asset is Rs. 210,000

Identify the differences between a Finance Lease and an Operating Lease 5.2. hijk Ltd leases an asset as a lessee. The lease agreement is for 6 years. Lease instalments of R145 545 made at the beginning of the period and interest rate is 9%. The commencement of the lease is 1 April 2021. Asset is depreciated over 4 years. The tax rate is 28%. Lease payments are allowed as a deduction when paid. Profit before tax is R600 000 Journalise the transactions for the year ended 31 December 2021 (Journal narrations are required)

hrl.7

Answer 2

Question

Chapter 10, Problem 20E

1.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

2.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

3.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 10, Problem 20E

1.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

2.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

3.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 10, Problem 20E

1.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

2.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

3.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Expert Solution & Answer

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Answer 5

Chapter 10, Problem 20E

1.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

2.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

3.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Answer 6

Chapter 10, Problem 20E

1.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Answer 7

Chapter 10, Problem 20E

1.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Answer 8

2.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Answer 9

2.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Answer 10

3.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Answer 11

3.

To determine

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 10 - Prob. 1MCQ Ch. 10 - Prob. 2MCQ Ch. 10 - Prob. 3MCQ Ch. 10 - Prob. 4MCQ Ch. 10 - Prob. 5MCQ Ch. 10 - Prob. 1DQ Ch. 10 - Prob. 2DQ Ch. 10 - Prob. 3DQ Ch. 10 - Prob. 4DQ Ch. 10 - Prob. 5DQ

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation. The nature of lease transaction.

Solution Summary: The author explains the nature of lease transaction, which is a finance lease. The term of the lease must be for almost the entire economic life of an asset.

Concept explainers

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Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Want to see the full answer?

Chapter 10 Solutions

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation. The nature of lease transaction.

Solution Summary: The author explains the nature of lease transaction, which is a finance lease. The term of the lease must be for almost the entire economic life of an asset.

Concept explainers

Videos

Introduction: Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation. The nature of lease transaction.

Introduction: Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation. The nature of lease transaction.

Introduction: Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation. The nature of lease transaction.

Want to see the full answer?

Chapter 10 Solutions

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.

Introduction:

Lease liability: The corporation takes some assets for use without getting the ownership by paying the periodic lease payments. Such transactions are recorded both as the assets and liabilities of the corporation.

The nature of lease transaction.