What are the two additional criteria for the lessor in a capital lease? How many of these criteria does the lease need to meet to be a capital lease? What happens if these criteria are not met?
Please identify and define the three classifications of loss contingencies. What is the appropriate accounting treatment for each category?
What are the footnote disclosures that are required relative to depreciable assets?
Please explain how the semiannual cash interest payment and the semiannual interest expense are calculated using the effective interest method. Which amount changes with every payment? Which amount stays constant?