ACCT 370 Connect Smartbook Assignment 13 solutions complete answers

ACCT 370 Connect Smartbook Assignment 13 solutions complete answers 

 

The residual value for a leased asset

 

When computing the present value of the guaranteed residual, the lessor uses

 

A ______ lease is treated as an executory contract and lease expense is recorded as the leased asset is used. Lessees do not record an asset or liability at the lease's commencement date.

 

Under ASC 842, lessees would

 

Under ASC 842, when accounting for a finance lease, the lessee

 

Under a five-year capital lease, interest expense recognized each year of the lease

 

When computing the lease payment amount, the lessor divides the amount to be recovered by

 

When a finance lease has a guaranteed residual, the lessee will recognize

 

Which of the following is not one of the three categories of leases according to ASC Topic 842?

 

In a finance lease with beginning of period payments,

 

The lessee's Finance lease liability–current at the end of its accounting year includes

 

For a capital lease, the lessee depreciates the asset over

 

For an operating lease with equal lease payments and accounted for under ASC 842, the lessee

 

On January 1, 2020, Klopman Corporation enters into a 10-year lease accounted for as an operating lease under ASC 842. The lease calls for annual payments to be made at the beginning of each year. Klopman uses a calendar year as its accounting year. At December 31, 2020, the amount of Klopman's Right-of-use asset–operating lease

 

When payments are made at the beginning of a lease period in a fiannce lease, the lessee

 

Managers prefer to classify leases as operating leases because

 

Which of the following are true of lease liabilities and assets?

 

Under ASC 842, the Operating lease liability

 

Bonduris Corporation enters into a 3-year lease accounted for as an operating lease under ASC 842. The lease calls for annual payments to be made at the beginning of each period. Immediately after the first payment is made, the amount of Bonduris's Right-of-use asset–operating lease

 

ASC 842 requires lessees include ______ in income from continuing operations.

 

      costs represent costs of using assets, such as maintenance, taxes, and insurance.

 

The amount of expense recognized by a lessee for a finance lease is

 

Which of the following would be considered qualitative information under ASC 842 disclosure requirements?

 

At the end of an accounting year,

 

Which of the following is not true of accounting for leases under IFRS 16?

 

ASC 842 requires lessees to disclose right-of-use assets and lease liabilities separately for

 

Baxter Corporation manufactures machinery. Each machine costs Baxter $60,000 to produce and has a cash sales price of $75,000. Baxter "sells" some of the machinery under 5-year sales-type leases, which require $20,000 annual lease payments. At the end of the lease, legal ownership of the machine transfers to the lessee. What is Baxter's total profit over the five years of the lease?

 

Archer Bank leases machinery to local manufacturers. Archer purchases the machinery from Baxter, the manufacturer, at their fair values of $75,000. The bank then leases the machinery under 5-year sales-type leases, which require $20,000 annual lease payments. At the end of the lease, legal ownership of the machine transfers to the lessee. What is Arche'rs financing profit over the five years of the lease?

 

Which of the following would be considered quantitative information under ASC 842 disclosure requirements?

 

Which of the following are differences between ASC 842 and IFRS 16?

 

The sales-type lease method results in which of the following favorable financial statement effects in comparison with the operating method?

 

Lessors should present sales-type lease assets

 

The total return on a lease for a lessor who uses leasing as a means for marketing products includes profit from which of the following sources?

 

The lessor must include which type of disclosure(s).

 

When a bank purchases assets from manufacturers at their fair value and then leases the assets to lessees, the bank's total profit on the sales-type lease will consist of

 

If the collectibility of lease payments was not probable, but later becomes probable, the lessor

 

IFRS 16 differs from ASC 842 on its lessor accounting guidance in that it

 

Which of the following are true of the comparison of the operating lease method and the sales-type method?

 

Which of the following are true of leases under the U.S. income tax rules?

 

Lessors should show receipts from a sales-type lease in the ______ section of a statement of cash flows.

 

At the end of 2017, a lessee reports a current capital lease obligation of $200,000, capital lease minimum rental commitments of $450,000, and a present value of total lease payments of $4,050,000. During 2018, the lessee is expected to pay

 

When collectibility of lease payments is not probable, ASC 842 requires

 

Which of the following is true of IFRS 16?

 

Synthetic leases are structured to achieve

 

Baxter Corporation manufactures machinery. Each machine costs Baxter $60,000 to produce and has a cash sales price of $75,000. Baxter "sells" some of the machinery under 5-year sales-type leases, which require $20,000 annual lease payments. At the end of the lease, legal ownership of the machine transfers to the lessee. What is Baxter's financing profit over the five years of the lease?

 

The qualitative disclosures required by the lessor include all of the following except

 

When accounting for a finance lease under ASC 840, the lessee records

 

When determining the lease payment in a lease, the lessor