Sales Type Leases Flashcards
1
Q
Recognizing gross profit for sales-type lease
A
Lessor recognizes GP immediately. It is the difference between selling price and cost of equipment
The selling price is present value of lease payments
CPA FAR > Sales Type Leases > Flashcards
Recognizing gross profit for sales-type lease
Lessor recognizes GP immediately. It is the difference between selling price and cost of equipment
The selling price is present value of lease payments