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12) Based solely upon the following sets of circumstances indicated below, which set gives rise to a sales-type lease? Transfers Ownership By End Of Lcase

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12) Based solely upon the following sets of circumstances indicated below, which set gives rise to a sales-type lease? Transfers Ownership By End Of Lcase 2019 Residual Value Yes No No Asset has no alternative Use to lessor No No Yes a. No No Bendl C. Yes ceSs d Yes Yes Yes WEnLA 13). For a finance lease. an amount equal to the present value of the minimum lease payments should be recorded by the lessee as a(n): A. Asset and a liability, B. Asset and a different amount should be recorded as a liability. C. Liability and a different amount should be recorded as an asset. D. Expense ance lease from an operating 14). The five criteria provided in GAAP for distinguishing a fin lease do not include: A. The agreement specifies that ownership transfers at the end of the lease term. B. Total lease payments equals or exceeds "substantially all" the fair value of the asset. C. The agreement contains a purchase option. D. The noncancelable lease term is 75% or more of the useful life of the leased asset. 15) In computing the annual lease payments, the lessor deducts only a guaranteed residual value from the fair market value of a leased asset. TRUE FALSE 16). In the operating lease, interest expense and amortization expense are shown separately on the income statement for good reporting purposes TRUE FALSE 17) Both a guaranteed and an unguaranteed residual value affect the lessee's computation of amounts capitalized as a leased asset. TRUE FALSE 18). Operating lease liability is reported in balance sheet of lessee as a "non-debt liability". TRUE FALSE FALSE Property tax is added as part of lease payment instead of as an expense. TRUE 19). A Right-of-use asset is always amortized over the term of the lease by the lessee TRUE FALSE 20). 21). A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year. TRUE FALSE Deductible amounts cause taxable income to be greater than pretax financial income in 22)

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