Question

Presented below are three different lease transactions that occurred for Milo Inc. in 2011. Assume that all lease contracts start on January 1, 2011. In no case does Milo receive title to the properties leased during or at the end of the lease term.


Instructions
(a) Which of the leases above are operating leases and which are capital leases? Explain.
(b) How should the lease transaction with Eller Co. be recorded in 2011?
(c) How should the lease transaction for Gibson Delivery be recorded on January 1,2011?


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  • CreatedMay 22, 2012
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