Solution-The first payment was made at the inception of the

The first payment was made at the inception of the lease

Assignment Help Accounting Basics

Reference no: EM131005428

1. Adams Storage and Appraisal leased equipment to OAC Corporation for an eight-year period, at which time possession of the leased asset will revert back to Adams. The equipment cost Adams $32 million and has an expected useful life of 11 years. Its normal sales price is $45 million. The present value of the minimum lease payments for both the lessor and lessee is $40 million. The first payment was made at the inception of the lease. How would OAC classify this lease if it prepares its financial statements using IFRS? Why?

Reference no: EM131005428

Questions Cloud

Prepare journal entries necessary to record the formation : Prepare the journal entries necessary to record the formation of the partnership - It is further agreed that the new partnership will assume all liabilities of the proprietorships.

Confidence interval for the population mean : Based on a random sample of 10 values from a normal population with mean μ and standard deviation σ, you calculated that xbar = 10 and the sample standard deviation = 4. Estimate a 95% confidence interval for the population mean. Which probability di..

Absolute advantage differs from comparative advantage : What is the mechanism by which the "invisible hand" pushes markets to equilibrium? Explain the two main causes of market failure and give an example of each. What is the difference between a positive and a normative statement? Give an example of each..

How much thermal power is rejected through the condenser : A 1000 MW(e) nuclear power plant has a thermal conversion efficiency of 33%. How much thermal power is rejected through the condenser to cooling water?

The first payment was made at the inception of the lease : The first payment was made at the inception of the lease. How would OAC classify this lease if it prepares its financial statements using IFRS? Why?

Name of the defendant or the court : When writing a trial brief, do you capitalize words like defendant and court every time, or do you simply state the name of the defendant or the court?

Compare the code of ethics of both starbucks-mcdonalds : Analyze and to compare and contrast the code of ethics of both Starbuck’s and McDonald’s. Summarize your analysis and findings in a two-page APA formatted paper. Course: BBA 4951, Business Policy and Strategy, Columbia Southern University

What is maximum possible conversion efficiency of reactor : In a BWR or PWR, steam is generated with a temperature of about 290 °C. If river water used to receive waste heat has a temperature of 20 °C, what is the maximum possible (ideal) conversion efficiency of the reactor's thermal en..

The computers were acquired by computer world at a cost : The computers were acquired by Computer World at a cost of $90,000 and were expected to have a useful life of six years with no residual value.

User Account

All Pages

The first payment was made at the inception of the lease

Reference no: EM131005428

Reference no: EM131005428

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT