User Account

All Pages

How should the lessor of these assets classify these leases

Assignment Help Accounting Basics
Reference no: EM133078568

Question - ABC CORP. leases a piece of land from another company. The lease does not transfer ownership of the land to the lessee but the present value of the future lease payments is equal to a significant portion of the fair market value of the land. It also leases a piece of equipment from the same company. The lease for this equipment does not contain a purchase option but the term of the lease is equal to 15 of the 20-year economic life of such an underlying asset which, under the new standard, comprises the majority of the equipment's useful life. How should the lessor of these assets classify these leases?

a. Lease of Land - Finance Lease; Lease of Equipment - Operating Lease

b. Lease of Land - Finance Lease; Lease of Equipment - Finance Lease

c. Lease of Land - Operating Lease; Lease of Equipment - Finance Lease

d. Lease of Land - Operating Lease; Lease of Equipment - Operating Lease

Reference no: EM133078568

Questions Cloud

Why a risk-averse person is willing to pay : Can you explain why an insurance company providing full insurance must charge more than the actuarially-fair premium if it is to stay in business.
Significant number of businesses : You are to answer the below questions in the context of the office space market in Australia. Please treat each question as a separate event:
What amount of gross profit on sale should be recognized : Ricky paid legal fees of P20,000 to an attorney in arranging the lease with the courts. What amount of gross profit on sale should be recognized
Calculate the arc elasticity of demand : 1) a. Your clinic has conducted market research and surveyed patients in two neighboring communities. You find community members in Arkham City (where your clin
How should the lessor of these assets classify these leases : ABC CORP. leases a piece of land from another company. How should the lessor of these assets classify these leases
Draw the locus of possible insurance contracts : a. Contrast prices in a market characterized by oligopoly vs. perfect competition and explain the difference.
Paycheck for social security and medicare : FICA deductions include money taken out of your paycheck for Social Security and Medicare. How much was deducted from this paycheck for FICA?
Find the gross pay and the deductions : Find the gross pay, the deductions, and the net pay for Tina, then, record the payroll in the journal, assume the payroll was paid using cash
Describe thomas malthus model of the economy : Describe Thomas Malthus model of the economy. Discuss concept such as average product of labour , living standards and population growth. Was Malthus correct in

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