determining whether a contract is or contains a lease? from use of an identified asset throughout the period of 1. Which of the following is not one of the criteria when c. Right to obtain substantially all of the economic benefits PROBLEM 2: MULTIPLE CHOICE - THEORY a. Identified asset b. Identified liability use d. Right to direct the use of the identified asset throughout the period of use

Interest costs related to which of the following types of assets qualify for interest capitalization? An asset a company manufactures and sells on a routine basis. An asset ready for its intended use at the time of purchase. An asset a company constructs as a discrete project for sale or lease, or an asset a company constructs for its own All of the above

If an entity as lessee presents as investment property a property interest held under an operating lease then the entity   1has the option of measuring some items of investment property using the cost model. 2shall measure in the financial statement all of its investment  property using the fair value models 3shall measure that leased property interest under the fair value model and the remaining investment property using the cost model. 4shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.

In calculating the amortization of a leased asset, the lessee should subtract a   Select one: a. guaranteed residual value and amortize over the term of the lease. b. unguaranteed residual value and amortize over the term of the lease. c. guaranteed residual value and amortize over the life of the asset. d. unguaranteed residual value and amortize over the life of the asset. e. None of the above.

Describe about what is the lessor, lessee and lease contract.

Identify the parties involved in a novated lease.

Provide correct answer for this question

Outline the accounting processes that must be followed by a lessee when using the operational lease method.

determine the initial recognition, initial measurement, and subsequent measurement offi nance leases;

1. Statement I. When the bargain purchase option was not exercised, the lessee should record a loss equivalent to the excess of the cost of the leased asset over the option price.Statement II. If there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term, the leased asset should be depreciated the shorter between the lease term and the asset’s remaining useful life.Statement III. Assuming the lessee depreciates the asset under the straight-line method, the pattern of the total expense that the lessee shall recognized with respect to the lease is the same every period. A. Only Statement I and II are incorrect. B. Only Statement II and III are incorrect. C. Only Statement I and III are incorrect. D. All statements are incorrect. E. All statements are correct. 2. Statement I. If the pattern of the repairs cannot be established and the obligation for warranty cannot be reasonably estimated, warranty costs are recorded as expense when…