FAR- Becker 5 Flashcards
1
Q
in a sale leaseback transaction, a gain resulting from the sale should be deferred at the time of the sale-leaseback when
A
the seller-lessee retains the right to substantially all of the remaining property.
2
Q
when should a lessor recognize in income a nonrefundable lease bonus paid by a lessee on signing an operating lease
A
over the life of the lease
Since the lease bonus is nonrefundable it represents income attributable to the lease term
3
Q
at the inception of a capital (finance) lease, the guaranteed residual value should be:
A
included as a part of minimum lease payments at present value,
Guaranteed residual value is in effect an additional lease payment and must be included.
