Please assist! I am very confused, so please be detailed in explanation if possible
Research Case In conclusion, for cach question below, first list your keywords and then provide codification references. Finally write a short business paper which summarizes your answers to both two questions. "I don't see that in my intermediate accounting text I saved from college," you explain to another member of the accounting division of Dowell Chemical Corporation. "This will take some research." Your comments pertain to the appropriate accounting treatment of a proposed sublease of warehouses Dowell has used for product storage. 1. Please determine whether the proposal to sublease will qualify as a termination of a finance lease. (1) Keywords: Dowell leased the warehouses one year ago on December 31. The five-year lease agreement called for Dowell to make quarterly lease payments of $2,398,303, payable cach December 31, March 31, June 30, and September 30, with the first payment at the lease's beginning. As a finance lease, Dowell had recorded the right-of-use asset and liability at S40 million, the present value of the lease payments at 8%. Dowell records depreciation on a straight-line basis at the end of cach fiscal year. (2) Codification Reference(s): Today, Jason True, Dowell's controller, explained a proposal to sublcase the underused warehouses to American Tankers, Inc. for the remaining four years of the lease term. American Tankers would be substituted as lessee under the original case agreement. As the new lessce, it would become the primary obligor under the agreement, and Dowell would not be secondarily liable for fulfilling the obligations under the Icase agreement. "Check on how we would need to account for this and get back to me," he had said. 2. What's the appropriate accounting treatment for the sublcase? (1) Keywords: Required: Answer the following two questions related to derecognition of finance leases by lessces. Students need to use the FASB's Codification Research System to obtain the relevant authoritative literature and explain the specific Codification citation that Dowell would rely on. You can access the FASB Codification at http://aaahq.org/ascLogin.cfm. When you go to the FASB site, use this log-in information: Username: AAA51750 Password: 7UrUT2s (2) Codification Reference(s): When you answer the questions, please identify the keywords that you searched for and list the appropriate references. Be specific and thorough in your referencing. There may be more than one relevant reference for any of the questions. You could use "advance search/refine search" to narrow down your results. The codification reference will generally be in the format of "FASB ASC throtttttttttt-tt" and will be down to the specific paragraph. Students need to include all digits from above with the least number occasionally containing two digits instead of one
