Question 45,A lessor has entered into a lease agreement that meets multiple of the criteria that require alessee to classify the lease as a capital lease. The lease also meets the following criteria: (1) thecollection of the minimum lease payments is reasonably assured, and (2) no importantuncertainties exist about unreimbursable costs to be included as part of the lease.Which of the following would the lessor be unable to classify this lease as when accounting for itin the lessor's books and records?(A) Operating lease(B) Sales-type lease(c) Direct financing lease(D) Leveraged lease(E) None of the aboveQuestion 46.Which of the following is true about how a lessee may depreciate a capital lease under ASC480?(A) They will depreciate the lease on a monthly basis and recognize depreciation expensewith an offset to the accumulated depreclation the capital lease.(B) If the lease is classified as a capital lease because it contains a bargain purchase option,the lessee will depreciate the lease over the period of time that the lessee is using theleased asset.(C) If the lease is classified as a capital lease because there is a transfer of owmership at theend of the term, the lessee will depreciate the lease over its estimated useful life.(D) All of the above.(E) Only choices (A) and (C).

The answer has been mentioned below. Note: Attempting the first question only. kindly…

A lessor has entered into a lease agreemen nssee to classify the lease as a capital leas collection of the minimum lease payments in uncertainties exist about unreimbursable co Vhích of the following would the lessor be u the lessor's books and records? (A) Operating lease (B) Sales-type lease (C) Direct financing lease (D) Leveraged lease

A lessor has entered into a lease agreemen nssee to classify the lease as a capital leas collection of the minimum lease payments in uncertainties exist about unreimbursable co Vhích of the following would the lessor be u the lessor's books and records? (A) Operating lease (B) Sales-type lease (C) Direct financing lease (D) Leveraged lease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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