User Account

All Pages

What is the ethical issue-reporting a lease as capital lease

Assignment Help Accounting Basics
Reference no: EM131134225

Question:

Primary Task Response:

Within the Discussion Board area, write 400-600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas:

ABC company enters into a lease agreement with XYZ corporation for laser tech machines. The lease agreement qualifies as an operating lease. However, there is one thing that stands out.

There is a bargain-purchase option. After the 3-year lease term, each laser tech machine can be purchased for $500, even though the market value is $850.

You are the controller of ABC company. You feel that the machine should be recorded as a capital lease because of the bargain-purchase option. Your manager, Martha, feels that at the end of the 3-year term, the laser tech will not be worth $500 because of rapid advances in technology.

What is the ethical issue?

What should you, the controller, do?

What are the generally accepted accounting principles (GAAP) for reporting a lease as a capital lease?

Reference no: EM131134225

Questions Cloud

Prepare a stockholders equity section at december : Molina Corporation is authorized to issue 10,000 shares of $40 par value, 10% preferred stock and 200,000 shares of $5 par value common stock. On January 1, 2010, the ledger contained the following stockholders' equity balances.
What are some of the factors that come into play : What are some of the factors that come into play when a nation is determining if they need or want disaster relief? Explain your answer in detail.
Why did you choose this mode of delivery : Imagine that you must make a proposal to your supervisor to create a training workshop for new hires in your Psychology field to help them acclimate to their jobs. Write a 500-word essay explaining your proposal to a colleague. How do you plan to del..
The standard error of the mean : b) How would the standard error change if the same size had been 5 instead of 20? (Assume that the sample standard deviation didn't change.)
What is the ethical issue-reporting a lease as capital lease : What should you, the controller, do - What are the generally accepted accounting principles (GAAP) for reporting a lease as a capital lease?
What is the opportunity cost of the eighth computer : Suppose advancing technology (e.g., the miniaturization of electronic circuits) increases the productivity of the 90-
Describe an application for market-basket analysis : Describe an application for market-basket analysis other than for a dive shop. Explain how you would use the knowledge that two products have a lift of 7.
Journalize the transactions and the closing entry : Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use J1 as the posting reference.)
Discuss how the idea of naturalism or modernism is depicted : How would you describe the protagonist in the work of your first author? Clearly identify three of the protagonist's most important characteristics and supply examples that support your idea.

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