Question
If bonds have been issued at a discount, over the life of the bonds, the a. carrying value of the bonds will decrease b. carrying
-
If bonds have been issued at a discount, over the life of the bonds, the
a. carrying value of the bonds will decrease
b. carrying value of the bonds will increase.
c. unamortized discount will increase.
d. interest expense will increase, if the discount is being amortized on a straight-line basis.
-
If the present value of lease payments equals or exceeds 90% of the fair value of the leased property, the
a. conditions are met for the lease to be considered a capital lease.
b. lease may be classified as an operating lease.
c. recording of a lease liability is optionalthat is, the off-balance sheet approach can be elected
d. lease is uneconomical and should not be entered into.
If bonds have been issued at a discount, over the life of the bonds, the
| a. | carrying value of the bonds will decrease | |
| b. | carrying value of the bonds will increase.
| |
| c. | unamortized discount will increase.
| |
| d. | interest expense will increase, if the discount is being amortized on a straight-line basis.
|
If the present value of lease payments equals or exceeds 90% of the fair value of the leased property, the
| a. | conditions are met for the lease to be considered a capital lease.
| |
| b. | lease may be classified as an operating lease.
| |
| c. | recording of a lease liability is optionalthat is, the off-balance sheet approach can be elected | |
| d. | lease is uneconomical and should not be entered into.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
