Oscar is a newly hired controller for Able Corporation, a nonprofit manufacturing firm. All of Able’s buildings are owned by the controlling shareholders and leased to the company on a yearly basis to maximize tax benefits. Oscar feels that it should be treated as a capital lease that would not give the company a tax advantage. Collin, the CEO, explains to Oscar that if they do this it would jeopardize a much-needed loan. Oscar should:

1. Report the lease as Collin requests.
2. Insist the lease be capitalized.
3. Report the lease as an operating lease but hint to the auditors that it is not.
4. Report the lease as an operating lease but convince the auditors that it should be capitalized.
5. 
   
Describe in no less than three sentences for each choice and explain why you made your choices

Answer rating: 100% (QA)

207191520 milllon do... View the full answer