1. In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest revenue * O a. should be recognized in full as revenue at the lease's Inception. O b. should be recognized over the perlod of the lease using the straight-line method. O c. should be recognized over the period of the lease using the interest method. O d. does not arise.

1. In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest revenue * O a. should be recognized in full as revenue at the lease's Inception. O b. should be recognized over the perlod of the lease using the straight-line method. O c. should be recognized over the period of the lease using the interest method. O d. does not arise.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 13GI: What is the basic difference between the accounting procedures used by a lessor for a sales-type...

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(4) In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned income A. should be amortized over the period of the lease using the effective interest method. B. should be amortized over the period of the lease using the straight-line method. C. does not arise. D. should be recognized at the lease's expiration. E. None of these answer choices are correct.
1. In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest revenue a. should be recognized in full as revenue at the lease's inception. b. should be recognized over the O period of the lease using the straight-line method. C. should be recognized over the period of the lease using the interest method. d. does not arise. 2. In a lease that is not classified as a manufacturer's lease, initial direct cost is * a. added to the cost of the asset to get the gross investment in the lease. b. added to the cost of the liability to get the net investment in the lease. c. added to the cost of the liability to get the gross investment in the lease. d. added to the cost of the asset to get the net investment in the lease.
A lessee records a lease obligation with a credit to the obligation in the amount of a. the total amount of the rental payments and other payments that are probable to occur b. the present value of the rental payments only c. the total amount of the rental payments only d. the present value of the rental payments and other payments that are probable to occur
45. In a lease that is recorded as a sales-type lease by the lessor, interest revenue should be recognized over the period of the lease using the straight-line method. should be recognized over the period of the lease using the effective interest method. does not arise. should be recognized in full as revenue at the lease’s inception.
t24 In a lease that is recorded as a manufacturer’s or dealer’s lease by the lessor, interest revenue should beA. recognized in full as revenue at the lease’s inception.B. recognized over the period of the lease using the straight-line method C. recognized over the period of the lease using the interest method.D. not be recognized in the accounts.
Which of the following is not correct statement for accounting by the lessee? The lessee records depreciation expense on the right-of-use asset. O b. The lessee recognizes interest expense on the lease liability over the lease term O c. The lease liability is computed as the present value of the lease payments. O d. The operating lease method is used to account for the lease.
If, as part of the accounting for a lease, the lessee debits an asset and credits a liability, then the lease must be a(n): A. finance lease. B. operating lease. C. operating lease or finance lease. D. none of the above. thanks for help
Which of the following are normal characteristics of a financial lease? I. Maintenance of the leased asset is the responsibility of the lessee. II. The lease is generally cancellable by the lessee prior to the expiration date. III. Financial leases are generally fully amortized. IV. The lessee usually has the right to renew the lease at the end of the initial lease period. Select one: O a. I, II, III, and IV O b. I, II, and IV only O c. II, II, and IV only O d. I and Il only Oe. I and II only
(48) If, as part of the accounting for a lease, the lessee debits an asset and credits a liability, then the lease must be a(n): A. Finance Lease B. Operating Lease C. Operating lease or finance lease D. none of the above
Which of the following statements characterizes a sales-type lease? The lessor recognizes only interest revenue over the life of the asset.. The lessor recognizes a dealer profit at lease inception and interest revenue over the lease term. The lessor recognizes a dealer profit at lease inception and interest revenue over the useful life. The lessor recognizes only interest revenue over the lease term.
If a sale and leaseback transaction results in a finance lease, any excess of sale proceeds over the carrying amount shall beI. Recognized immediately as income by the seller-lessee.II. Deferred and amortized as income by the seller-lessee over the lease term. Either I or II II only I only Neither I nor II
Under a capital lease: Select one: a. The lessee report assets on balance sheet O b. None of the options c. The lessee report rent expenses on income statement d. The lessor report rent expense on income statement