Operating sales-type leases

Assignment Help Accounting Basics

Reference no: EM13127098

Finance Here Sales & Service provides leased-based financing for its full line of commercial generators. Sales of the generators are properly accounted for as operating sales-type leases. Terms of the leases include return of the generators to Finance Here Sales & Service for resale in secondary markets. The company estimates that the non-guaranteed residual values on generators are equal to an average of 10 percent of the historical cost of the generators. Finance Here Sales & Service can expect that:

A) Cost of goods sold will be equal to the historical cost of the generators sold.

B) Cost of goods sold will be greater than the historical cost of the generators sold.

C) Cost of goods sold will be less than the historical cost of the generators sold.

D) The relationship of cost of goods sold and the historical cost of the generators cannot be determined.

Reference no: EM13127098

Questions Cloud

Reporting the bond liability : On December 31 year 1 Todd Corporation issued 500 of its 10% $1,000 bonds at 105. Todd Corporation uses IFRS. The bonds were issued through an underwriter to whom Todd paid bond issue costs of $15,000. On December 31 Year 1 balance sheet Todd shou..

Illustrate at what amount the land should be recorded : Illustrate at what amount the land should be recorded at January 1, 2013, and the interest expense to be reported in 2013 related to this transaction.

How important is foreign direct investment to south africa : Foreign direct investment (FDI) refers to investments in which the investor retains a long-term interest and some degree of control over the enterprise in which the investment takes place.

How many grams of c are combined : How many grams of C are combined with 2.91 x 1023 atoms of H in the compound C5H10?

Operating sales-type leases : Finance Here Sales & Service provides leased-based financing for its full line of commercial generators. Sales of the generators are properly accounted for as operating sales-type leases.

What is the volume of benzene : What is the Volume of 1.05mol of Benzene (C6H6) at 20.7 degrees C. The density of Benzene is 0.879 g/mL

Conformal map to fit certain restrictions : Find a conformal mapping which maps the upper half plane Im(z)>0 to |w| 0.

Illustrate what is state pollution remediation obligation : List all non-major enterprise funds. How many miles of state highway were reported as of June 30, 2011? Illustrate what is the state's pollution remediation obligation as of June 30, 2011?

Explain derive the fractional compositions for monoprotic : Derive the fractional compositions for monoprotic and diprotic systems showing the steps as clear as possible including a brief description of a fraction compostion plot.

User Account

All Pages