Question: On December 31 2014 Lane Inc sold equipment to Noll

On December 31, 2014, Lane, Inc., sold equipment to Noll and simultaneously leased it back for 12 years. Pertinent information at this date is as follows:
Sales price ........... $480,000
Carrying amount .......... $360,000
Estimated remaining economic life .. 15 years

Required:
1. At December 31, 2014, should Lane report a gain from the sale of the equipment?
2. If not, how should it account for the sale and leaseback?


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  • CreatedSeptember 10, 2014
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