Under a direct financing lease, the excess of aggregate rentals over the cost of the leased property shall be recognized as interest income of the lessor in increasing amounts during the lease term after the cost of the leased asset has been fully recovered through rentals in constant amounts during the lease term in decreasing amounts during the lease term
Under a direct financing lease, the excess of aggregate rentals over the cost of the leased property shall be recognized as interest income of the lessor in increasing amounts during the lease term after the cost of the leased asset has been fully recovered through rentals in constant amounts during the lease term in decreasing amounts during the lease term
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 8MC: At its inception, the lease term of Lease G is 65% of the estimated remaining economic life of the...
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Under a direct financing lease, the excess of aggregate rentals over the cost of the leased property shall be recognized as interest income of the lessor
in increasing amounts during the lease term
after the cost of the leased asset has been fully recovered through rentals
in constant amounts during the lease term
in decreasing amounts during the lease term
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