Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

52. What amount of profit on sale and interest income, respectively, should be recognized for the year ended December 31, 2018? A. 720,000; 176,000 B.

image text in transcribed

52. What amount of profit on sale and interest income, respectively, should be recognized for the year ended December 31, 2018? A. 720,000; 176,000 B. 720,000; 146,000 C. 45,000; 176,000 D. 45,000; 146,000 53. Lease payments under an operating lease shall be recognized as an expense in the income statement on A. Straight line basis over the lease term unless another systematic basis is representative of the time pattern of the user's benefit. B. Diminishing balance basis C. Sum of units basis D. Cash basis 54. Under a direct financing lease, the excess of aggregate rentals over the cost of leased property shall be recognized as interest income of the lessor A. In increasing amounts during the lease term B. In constant amounts during the lease term C. In decreasing amounts during the lease term D. After the cost of leased property has been fully recovered through rentals 55. What is the treatment of unguaranteed residual value in determining the cost of goods sold under a sales type lease? A. The unguaranteed residual value is ignored. B. The unguaranteed residual value is added to the cost of the leased asset C. The unguaranteed residual value is deducted from the cost of the leased asset at absolute amount. D. The unguaranteed residual value is deducted from the cost of the leased asset at present value. 56. The excess of the fair value of leased property at the inception of the lease over the carrying amount should be recognized by the dealer lessor as A. Unearned income from a sales type lease B. Unearned income from a direct financing lease C. Manufacturer profit from a sales type lease D. Manufacturer profit from a direct financing lease

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial accounting

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

1st edition

471467855, 978-0471467854

More Books

Students also viewed these Accounting questions