Question
When a lessor records a sales-type lease, the transaction is similar to ________. exchanging assets selling a fixed asset selling merchandise on account purchasing merchandise
When a lessor records a sales-type lease, the transaction is similar to ________.
| exchanging assets | ||
| selling a fixed asset | ||
| selling merchandise on account | ||
| purchasing merchandise on account |
10 points
Question 10
Which of the following factors is most indicative that a lease should be recorded as a a finance lease under IFRS?
| The present value of the minimum lease payments is at least equal to the majority of the cost of the property at the lease's inception. | ||
| The leased asset can be transferred to a subsequent owner during the course of the lease. | ||
| Ownership of the property is transferred to the lessee at the end of the lease. | ||
| The lease term equals at least 50% of the economic life of the asset. |
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