User Account

All Pages

Explain the accounting treatment in the lessee books

Assignment Help Accounting Basics
Reference no: EM133184171

Question - Caymanas Manufacturing Limited negotiated a lease for a machine on January 1, 2020. The useful life of the machine is estimated at 10 years. The fair value of the machine is $1,800,000. The lease term is 4 years. The annual lease payment is $210,000. The financial year end for Caymanas Manufacturing Limited is December 31, 2020.

Required -

a. Discuss whether this lease should be accounted for as an operating lease or a finance lease in the lessee's books.

b. Explain the accounting treatment in the lessee's books for the year ended December 31, 2020.

Reference no: EM133184171

Questions Cloud

Difference between critical thinking and creative thinking : What is the difference between critical thinking and creative thinking and Develop three questions you could ask to identify individual knowledge gaps
Misleading data visualization : For this discussion, find one example where someone is misrepresenting data through improper use of statistics to support their viewpoint.
Why role is important in the scope of the transaction : Question 1: Discuss the most vital roles involved in Residential Real Estate transactions.
Field study on tesla entry in indian market : What method you used How the research was done and why it was done that way and what limitations, issues faced and barriers while doing research on tesla's entr
Explain the accounting treatment in the lessee books : Caymanas Manufacturing Limited negotiated a lease for a machine on January 1, 2020. Explain the accounting treatment in the lessee books
Explain canadian business environment and exploring employer : Question 1: Explain canadian business environment and exploring employer - employee relationship.
Important stage in the alliance life cycle : Deciding on the structure and terms and conditions of the alliance is a challenging and important stage in the alliance life cycle. Comment on the structure of
Prepare the stockholders equity section of the balance sheet : Retained Earnings, $1,600,000; and Additional Paid-in Capital, $7,600,000. Prepare the stockholders' equity section of the balance sheet
Develop and maintain secure systems and applications : What PCI DSS section you are talking about

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd