1. Compare Operating Lease and Capital Lease. How are they different? Also, explain tax benefits and off-balance benefits.

2. Research and explain how to record and report the following operating lease activities.

(1) Free rent or Discounted rent

(2) Lease Bonus

(3) Security Deposit (Refundable, Non-refundable)

(4) Lease-hold improvement

3. Define and explain 4 criteria to recognize Capital Lease distinguished from Operating Lease.

4. Research and explain how to record and report Capital Lease Asset (CLA) or Capital Lease Obligation (CLO).

5. Research and explain how to record and report Pension Plans transactions.

6. Explain how to reconcile Pretax Financial Income to Taxable Income for tax purposes.

7. Research and explain how to record and report Deferred Tax Liability (DTA) and Deferred Tax Asset (DTA).

8. [Financial Statement Analysis] Explain the following Leverage ratios in terms of (1) equation (2) meaning (3) how companies and investors use the ratios.

a. Debt Ratio

b. Debt to Equity ratio

c. Equity Multiplier

d. Times Interest earned