Accounting 302 Chapter 18

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Kataran Company enters into a 4minus−year lease​ transaction, with payments due at the beginning of each year. The lease payments are $78,000 per year. The fair value of the leased asset is $290,000. The​ lessor's deferred initial direct costs are equal to $24,000. The​ lessor's estimate of the unguaranteed residual asset is $155,000.

(4,-78000,314000,-155000,1) =20.61%

Prior to​ 2019, lessees did not include the rightminus−ofminus−use asset and the lease liability for operating leases on their balance sheets. Both FASB and IASB wrote new standards to require that lessees nearly always report an asset and liability on their balance sheets when they engage in alease transaction. This accounting results in which of the​ following?

a more faithful rep of the rights and obligations arising from leases

Which of the following items are not examples of initial direct lease​ costs?

all the above are indirect lease costs

In instances where there is not an observable standalone selling​ price, the lessor must use an estimate of the standalone selling price and allocate it based on which of the following​ methods?

expectedcostplus a margin, residual approach, adjusted market assessment approach

In​ general, the cost of an asset over the life of the lease is lower than if the lessee purchased the asset.

false

The initial direct costs cannot be deferred and the lessor must expense initial direct costs at the lease commencement.

false

After identifying a​ lease, both the lessee and the lessor are required to separate the various lease and nonlease components and allocate consideration to these components.

true

Present value of lease payments​ + Present value of guaranteed or unguaranteed residual asset​ = Fair value of leased asset​ + Deferred initial direct costs.

true

When a company purchases equipment by issuing a longminus−term ​note, the interest element of the payment is tax deductible.​ However, if the company leases​ equipment, the entire lease payment may be tax deductible.

true

Kataran Company enters into a 4−year lease​ transaction, with payments due at the beginning of each year. The lease payments are $78,000 per year. The fair value of the leased asset is$290,000. The​ lessor's deferred initial direct costs are equal to$24,000. The​ lessor's estimate of the unguaranteed residual asset is $125,000. Based on the above​ information, what is the implicit rate in the lease for​ Kataran?

17.61%

Kataran Company enters into a 4minus−year lease​ transaction, with payments due at the beginning of each year. The lease payments are $ 78 comma 000$78,000 per year. The fair value of the leased asset is $ 290 comma 000$290,000. The​ lessor's deferred initial direct costs are equal to $ 24 comma 000$24,000. The​ lessor's estimate of the unguaranteed residual asset is $ 150 comma 000$150,000. Based on the above​ information, what is the implicit rate in the lease for​ Kataran

20.13%

Which of the following assets is always considered a separate lease component in a​ lease, unless the impact on the financial statements of not separating it from the other​ asset(s) is​ insignificant?

land

The​ ________ date is when the lease agreement is signed. The​ ________ date is the date on which the lessee is allowed to begin using the leased asset.

lease inception, lease commencement

If the lessor meets any one of the five Group I​ criteria, then the lessor classifies the lease as a​ ________. If the lessor meets both of the Group II​ criteria, but none of the Group I​ criteria, then the lessor classifies the lease as a​ ________. If the transaction does not meet either the Group I or Group II​ criteria, then the lessor classifies the lease as a​ ________.

salesminus−type ​lease; direct financing​lease; operating lease


Kaugnay na mga set ng pag-aaral

🩺 Chapter 17: Preoperative Nursing Management

View Set

Chapter 18: Income Inequality & Poverty

View Set

QA питання по теорії

View Set

Chapter 24: The Child with a Musculoskeletal Condition

View Set

Assessment of Musculoskeletal System; Musculoskeletal Trauma and Orthopedic Surgery

View Set