Question
Answer Yes or No for the following questions. A: Alternative Use Test Under the terms of HYPER the Lessor is offering a standard or generic
Answer "Yes or No" for the following questions.
A:
Alternative Use Test
Under the terms of HYPER the Lessor is offering a standard or generic version of the leased asset, without ANY modifications to the Lessee. This ensures that when the leased asset is returned to the Lessor it will be able to rent it to many other Lessee clients.
Has the Alternate Use Test (meaning no alternate use to the Lessor) test been passed? (Answer no if the Lessor retains a viable alternate use.)
B:Is the HYPER lease contract a Finance Lease?
C:Is the HYPER lease term were less than 1 year (see 3 above) would it be sufficiently short that it qualifies for an exception to the new lease accounting rules and it can be carried off balance sheet?
D:Will the Lessees Right of Use asset in HYPER qualify to be amortized straight line, and as a separate expense in, the Lessees Income Statement?
E:Will the Lessees accountants when preparing the accounting for HYPER need a Lease Obligation Amortization Table?
F:At the end of HYPERs lease term, will the Lessee have the right to place the asset on its balance sheet because it owns it after making all the lease payments?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started