Blane Inc. entered into a five-year lease of equipment from Zdrinka Inc. At the lease's inception, it

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Blane Inc. entered into a five-year lease of equipment from Zdrinka Inc. At the lease's inception, it is estimated that the equipment has an economic life of eight years and fair value of $250,000. Present value of minimum lease payments amounts to $215,606.50. The lease does not transfer title or contain a bargain purchase option.
(a) Assume that Blane follows IFRS. How should Blane classify this lease?
(b) Assume that Blane follows ASPE. How should Blane classify this lease?
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Intermediate Accounting Volume 2

ISBN: 9781119497042

12th Canadian Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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