On January 1, 2013, Von Company entered into two non-cancelable leases for new machines to be used
Question:
Required:
1. Explain the theoretical basis for requiring lessees to capitalize certain long-term leases. Do not discuss the specific criteria for classifying a lease as a capital lease.
2. Explain how a lessee should account for a capital lease at its inception.
3. Explain how a lessee should record each minimum lease payment for a capital lease.
4. Explain how Von should classify each of the two leases.
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1 The economic effects of a longterm capital lease on the lessee are similar to that of an equipment ...View the full answer
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Related Book For 
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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