Recording capital leases for the lessee and sales, Accounting Basics

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Recording capital leases for the lessee and sales

If the benefits and risks of ownership have been transferred in a lease agreement, a capital lease should be recognized. Besides this, another conceptual consideration for recording capital leases for the lessee and sales or direct-financing leases for the lessor is

A. consistency in accounting between the lessee and lessor

B. the use of the same discount rate for present value computations by both the lessee and lessor

C. the same asset cost-basis for both the lessee and lessor

D. the recognition of the same amount of interest revenue (lessor) and interest expense (lessee)

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Accounting Basics: Recording capital leases for the lessee and sales

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Accounting Basics: Recording capital leases for the lessee and sales

Reference No:- TGS050530

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Investor holding period return in british pounds

Q : Proponents of the net-of-tax method

Q : Calculating the present values

Q : Find the current dividend on a stock

Q : Recording capital leases for the lessee and sales

Q : Find the required return for a stock

Q : Entity estimated bad debts

Q : Calculating company quick ratio

Q : Long-term assets and liabilities

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Request for Solution File

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Accounting Basics: Recording capital leases for the lessee and sales

Reference No:- TGS050530

Recent Questions Asked Accounting Basics

Q : Investor holding period return in british pounds

Q : Proponents of the net-of-tax method

Q : Calculating the present values

Q : Find the current dividend on a stock

Q : Recording capital leases for the lessee and sales

Q : Find the required return for a stock

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