Quiz 15.63 – Lessor Accounting for Lease Transaction
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Which of the following items would the lessor NOT record in a lease transaction?
Which of the following items would the lessor NOT record in a lease transaction?
What should the lessee record as a result of a finance lease transaction?
What is the appropriate way to report a sales-type lease in the lessor’s balance sheet?
What are the implications of using different interest rates for the lessee and lessor in a finance/sales-type lease?
How will J Corp.’s cash flow be classified in the statement of cash flows for the year ending December 31, Year 1, after entering into an operating lease in February of Year 1?
What is the amount of interest included in the third year payment of an eight-year finance lease?
What is the most similar transaction to recording a sales-type lease with a selling profit?
What type of lease will a lessor account for when a noncancelable lease includes an option to purchase a leased asset at a price that is reasonably certain, and the fair value of the asset exceeds the lessor’s cost?
Which method of asset amortization should Andres Company use in an operating lease where the asset’s economic life and lease term differ?
What is the amortization of the right-of-use asset in the third year of an operating lease?