a.
Financial Lease:
It refers to a way of providing funds where the owner leases his or her assets to the users for rent for a specific period of time. In this ownership of the assets is to be transferred to the user at the end of the lease period.
Operating Lease:
It refers to a lease where risk and reward related to ownership of the assets remain with the owner of the assets. In this user of the assets return the assets to the owner after using them.
The amount of prior period adjustment in the year of correction.
b.
Financial Lease:
It refers to a way of providing funds where the owner leases his or her assets to the users for rent for a specific period. In this ownership of the assets is to be transferred to the user at the end of the lease period.
Operating Lease:
It refers to a lease where risk and reward related to ownership of the assets remain with the owner of the assets. In this user of the assets return the assets to the owner after using them.
To prepare: Partial comparative income statement for the year ended December 31 2019 through 2021.
Want to see the full answer?
Check out a sample textbook solution
Chapter 21 Solutions
INTERMEDIATE ACCOUNTING-MYACCOUNTINGLAB
- No WRONG ANSWERarrow_forwardAt the end of the fiscal year 2023, Elliott Manufacturing Co. had net property, plant, and equipment (PPE) of $4.2 billion. The ending balance for 2022 was $4.150 billion, and the firm had depreciation expense during 2023 of $0.850 billion. How much did the company spend on new property, plant, and equipment (PPE) during 2023?arrow_forwardIf total assets equal $410,000 and total owners' equity equals $138,000, then total liabilities must equal_. (A) $548,000 (B) $272,000 (C) Cannot be determined from the information given (D) $138,000arrow_forward
- Answer with clear data. if you answer with any unclear dara then unhelpfularrow_forwardWhat was the amount of sales for the month ?arrow_forwardThe tax savings from an expense item are $90,000 for a company that spends 30% of its income on taxes. How much does the item cost before tax? (a) $280,000 (b) $300,000arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education