Sales-type lease Sales type lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment. Purchase option Purchase option is provision of certain lease contracts which provides the lessee the option to purchase the leased asset during the period of lease or at the end of the lease term at a particular exercise price. To Explain: the calculations for $8,000 annual lease payments for this sales type lease.

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Answer 1

Question

Chapter 15, Problem 15.18E

(1)

To determine

Sales-type lease

Sales type lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment.

Purchase option

Purchase option is provision of certain lease contracts which provides the lessee the option to purchase the leased asset during the period of lease or at the end of the lease term at a particular exercise price.

To Explain: the calculations for $8,000 annual lease payments for this sales type lease.

(2)

To determine

To Prepare: amortization schedule for UL Company (Lessor)

(3)

To determine

To Prepare: appropriate entries for UL Company (Lessor) from the beginning of the lease through the end of lease term.

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Answer 2

Question

Chapter 15, Problem 15.18E

(1)

To determine

Sales-type lease

Sales type lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment.

Purchase option

Purchase option is provision of certain lease contracts which provides the lessee the option to purchase the leased asset during the period of lease or at the end of the lease term at a particular exercise price.

To Explain: the calculations for $8,000 annual lease payments for this sales type lease.

(2)

To determine

To Prepare: amortization schedule for UL Company (Lessor)

(3)

To determine

To Prepare: appropriate entries for UL Company (Lessor) from the beginning of the lease through the end of lease term.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 15, Problem 15.18E

(1)

To determine

Sales-type lease

Sales type lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment.

Purchase option

Purchase option is provision of certain lease contracts which provides the lessee the option to purchase the leased asset during the period of lease or at the end of the lease term at a particular exercise price.

To Explain: the calculations for $8,000 annual lease payments for this sales type lease.

(2)

To determine

To Prepare: amortization schedule for UL Company (Lessor)

(3)

To determine

To Prepare: appropriate entries for UL Company (Lessor) from the beginning of the lease through the end of lease term.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 15, Problem 15.18E

(1)

To determine

Sales-type lease

Sales type lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment.

Purchase option

Purchase option is provision of certain lease contracts which provides the lessee the option to purchase the leased asset during the period of lease or at the end of the lease term at a particular exercise price.

To Explain: the calculations for $8,000 annual lease payments for this sales type lease.

(2)

To determine

To Prepare: amortization schedule for UL Company (Lessor)

(3)

To determine

To Prepare: appropriate entries for UL Company (Lessor) from the beginning of the lease through the end of lease term.

Expert Solution & Answer

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See solution

Answer 5

Chapter 15, Problem 15.18E

(1)

To determine

Sales-type lease

Sales type lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment.

Purchase option

Purchase option is provision of certain lease contracts which provides the lessee the option to purchase the leased asset during the period of lease or at the end of the lease term at a particular exercise price.

To Explain: the calculations for $8,000 annual lease payments for this sales type lease.

(2)

To determine

To Prepare: amortization schedule for UL Company (Lessor)

(3)

To determine

To Prepare: appropriate entries for UL Company (Lessor) from the beginning of the lease through the end of lease term.

Answer 6

Chapter 15, Problem 15.18E

(1)

To determine

Sales-type lease

Sales type lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment.

Purchase option

Purchase option is provision of certain lease contracts which provides the lessee the option to purchase the leased asset during the period of lease or at the end of the lease term at a particular exercise price.

To Explain: the calculations for $8,000 annual lease payments for this sales type lease.

Answer 7

Chapter 15, Problem 15.18E

(1)

To determine

Sales-type lease

Sales type lease is a parallel type of direct financing whereby the owner (lessor) purchases the equipment to lease it and received the interest revenue over the period of lease for equipment, apart from the recognition of profit from sale of equipment.

Purchase option

Purchase option is provision of certain lease contracts which provides the lessee the option to purchase the leased asset during the period of lease or at the end of the lease term at a particular exercise price.

To Explain: the calculations for $8,000 annual lease payments for this sales type lease.

Answer 8

(2)

To determine

To Prepare: amortization schedule for UL Company (Lessor)

Answer 9

(2)

To determine

To Prepare: amortization schedule for UL Company (Lessor)

Answer 10

(3)

To determine

To Prepare: appropriate entries for UL Company (Lessor) from the beginning of the lease through the end of lease term.

Answer 11

(3)

To determine

To Prepare: appropriate entries for UL Company (Lessor) from the beginning of the lease through the end of lease term.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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To Prepare: amortization schedule for UL Company (Lessor)

To Prepare: appropriate entries for UL Company (Lessor) from the beginning of the lease through the end of lease term.

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