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Given the following data, determine the appropriate lease classification. Asset FMV and book value $40,000 Lease term 11 months Asset life 14 months Guaranteed salvage
Given the following data, determine the appropriate lease classification. Asset FMV and book value $40,000 Lease term 11 months Asset life 14 months Guaranteed salvage value $5,000 Lessee's estimated salvage value $3,000 No Bargain Purchase Option or Title Transfer Two-month Renewal Option exists, lessee reasonably certain to renew. Present value of lease payments 63% of Asset FMV. Lessor has foreseeable alternative use for asset. Select one: a. Short-term lease O b. Finance lease O c Operating lease Brooks Company leases a machine from Chalon Company on 1/1/23. Given: Asset FMV $100,000 Asset Book Value $85,000 January 1 payments Guaranteed Salvage Value $10,000 Lessee expected salvage value $6,000 Implicit and incremental rates 5% Five-year lease; five-year asset FINANCE LEASE Compute Chalon's 12/31/23 Lease Receivable balance Select one: O a. $100,000 O b. $15,000 c. $79,725.98 O d. $83.712.28 O e. $75.739.68 Following is the general format of a four-column bank recondition with the various categories and presentation of reconciling items numbered (1) through (8) Per Bank Statement Items to be added Items to be deducted Por Books Balance 10/31 $XXXXX 1 (2) sxxx November Recepts SXXXXX 3 ( SXXXXX November Disbursements SXXXXX 5 (6) SXXXXX Balance 11/30 $XXXXX 7 (8) Sxxxx Indicate the proper presentation of November bank service charge that is a reconciling item at 11/30 Select one: Ca. 6 and 7 O 6, 4 and 5 ac 5 and 8 0.0.5 and 8 0.61 and 5 Following is the general format of a four-column bank reconciliation with the various categories and presentation of reconciling items numbered (1) through (8) Balance 10/31 Sxxxxx 1 (2) $XXXXX November Receipts 3 Por Bank Statement items to be added forns to be deducted Per Books November Disbursements SXXXXX 5 (6) SXXXXX Balance 11/30 SXXXXX 7 (8) Sxxxxx $Xxxxx A customer check was dishonored by the bank during November and recorded on the books as a negative receipt. Indicate the proper presentation of this reconciling item Select one: 1.5 and 8 b.4 and 8 O4 and 5 d. Land 4 0.4 and 6
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