Lease

Question 0

Record lease include

Answer 0

Required payments
Bargain purchase option
Residual value
EXCLUDE: executory cost and optional buyout

Question 1

Substantially all risk of ownership transferred is a

Answer 1

True sale,

Question 2

Amortize bonus to obtain lease over the life if the lease

Answer 2

So that amort portion is expense

Question 3

Leaseback sale: defer all gain and amort with leased asset if

Answer 3

PV of payment is over 90% of FV, it’s a capital lease

Question 4

Leaseback: defer gain up to the PV of min leaseback payments {operating} or cap asset. Between 90-10%

Answer 4

Gain in excess is rec immediately.

Question 5

Sale leaseback : PV less than. 20% of FV

Answer 5

Rec gain or loss right away

Question 6

IFRS finance lease gain is deferred and amortized over or if

Answer 6

Operating lease and price is above FV.

Is price is = FV the. Gain is rec right away.

Question 7

The lessor will earn interest rev when he lease stuff under a contract that transfer title, he will take the assets off his books and not dep it bc the

Answer 7

Lessee will incur both interest and dep expense at asset capital lease inception

Question 8

Lease receivable for lessor in direct financing included

Answer 8

Min lease payments and residual value is any.

Question 9

Operating lease expense is rec equally over life if lease

Answer 9

So if each year payment is different you all them up and divided it to get equal amount…. Then find monthly rent

Question 10

Security deposit is an

Answer 10

Asset not and occupant expense!!!