Revolutionize the medical profession

Assignment Help Other Subject

Reference no: EM13786199

Digitial X-Ray, has introduced a new line of equipment that many revolutionize the medical profession. Because of the new technology involved, potential users of the equipment are reluctant to purchase the equipment, but they are willing to enter into a lease arrangement as long as they can classify the lease as an operating lease. The new equipment will replace equipment that Digital X-Ray has been selling in the past. It is estimated that a 25% loss of actual equipment sales will occur as a result of the leasing policy for the new equipment.

Management must decide how to structure the leases so that their customers can treat them as operating leases. Some members of management want to structure the leases so that Digital X-Ray, as lessor, can classify the lease as a sales-type lease and thus avoid a further reduction of income. Others believe that they should treat the leases as operating leases and minimize the income tax liability in the short term.

They are uncertain as to how leases could be structured to permit the lessee to treat the lease as an operating lease and the lessor to treat it as a sales-type lease. You are asked to respond to this question.

Reference no: EM13786199

Questions Cloud

Cost analysts to function more as business partners : This change will free up significant resources in the finance department and will allow cost analysts to function more as business partners within the organization.”

An aasignment on international trade relations : Why was the GATT system described as the "third leg" of the post-war international economic system? What were the two other institutions

Maternal anxiety and infant temperament discussion : In chapter 4 (p. 123-124), Shaffer discusses heredity and environmental influences on temperament. There have been multiple studies examining the relationship between maternal stress during pregnancy and infant temperament. Animal studies have expe..

What is an ehr and why is everyone rushing to install them : What is an EHR, and why is everyone rushing to install them now? Are there pros and cons to such systems?

Revolutionize the medical profession : Digitial X-Ray, has introduced a new line of equipment that many revolutionize the medical profession. Because of the new technology involved, potential users of the equipment are reluctant to purchase the equipment, but they are willing to enter..

Firm save annually in ordering-carrying costs by using EOQ : A produce distributor uses 740 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once..

What feature in windows vista provides a permission dialog : Moving from one NTFS partition to another creates one copy of the object. The object in the new location inherits the permissions of the new location. So the newly moved file cannot have different permissions than the original.

Biological factors that influence sensation and perception : Differentiate between sensation and perception. Explain the importance of separating these concepts. Identify the biological factors that influence sensation and perception.

Write paper about essay collage education for global economy : Write a paper about the essay Collage Education for the Global Economy.

User Account

All Pages