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Describe how a capital lease would be accounted for by the lessee both at the inception of the lease and during the first year of
Describe how a capital lease would be accounted for by the lessee both at the inception of the lease and during the first year of the lease, assuming the lease transfers ownership of the property to the lessee by the end of the lease.
Describe how an operating lease would be accounted for by the lessee both at the inception of the lease and during the first year of the lease, assuming equal monthly payments are made by the lessee at the beginning of each month of the lease. Describe the change in accounting, if any, when rental payments are not made on a straightline basis.
Compare and contrast a salestype lease with a directfinancing lease as follows.
Lease receivable
Recognition of interest revenue
Manufacturer's or dealer's profit
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