Question: For a lessor that reports under U . S . GAAP, a lease is classified as an operating lease if: a . the fair value

For a lessor that reports under U.S. GAAP, a lease is classified as an operating lease if:
a. the fair value of the asset is greater than the sum of the lease payments and the asset's expected residual value.
b. ownership risks are not substantially transferred to the lessee.
c. it cannot be classified as a sales-type lease or a direct financing lease.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Revenue Recognition In 2013 Airbus announced a contract to deliver 50 A380 airplanes to Emirates for $20 billion to be delivered between 2016 and 2018. Required: Outline the fivestep revenue...

Q:

Ok. I read the article and sounded familiar to our textbook's Chapter 1. As for the questions, I will go last, because I picked the articles, and each of you guys pick a question to work on , and...

Q:

Ok. I read the article and sounded familiar to our textbook's Chapter 1. As for the questions, I will go last, because I picked the articles, and each of you guys pick a question to work on , and...

Q:

1 . An IFRS - reporting airline leases a new airplane from its manufacturer for ten years. For financial reporting, the airline: a . must disclose the present value of the future lease payments if it...

Q:

Question 1 How is a guaranteed residual value accounted for when computing minimum lease payments? It is ignored. The present value of the guaranteed residual value is added in to determine the...

Q:

1. Which of the following is not a sufficient criterion for a lessor to classify a leuse as a sales-type lease? 2. The lease transfers ownership of the leased asset to the lessee at the end of the...

Q:

For a lessor that reports under U.S. GAAP, a lease is classified as an operating lease if: the fair value of the asset is greater than the sum of the lease payments and the assets expected residual...

Q:

For a lessor that reports under U.S. GAAP, a lease is classified as an operating lease if: the fair value of the asset is greater than the sum of the lease payments and the assets expected residual...

Q:

CHECK the CORRECT BOX FOR WHETHER THE CLASSIFICATION TEST HAS BEEN PASSED (SATISIFIED) OR NOT. Failed Passed This is a FINANCE LEASE LEASE CLASSIFICATION TESTS Evaluate a Lease Contract using the...

Q:

Please can you answer question 26-31? thanks pension obligation during the year? a. Benefits paid to the retirees b. Interest cost c. Actual return on the pension assets. 26. According to the new...

Q:

The lease term includes any periods covered by an extension option if it is reasonably certain that the extension option will be exercised. Question 1 options: True / False Question 2(1 point) The...

Q:

How does technological change influence the planning for capital spending decisions?

Q:

What could group members have done differently to increase group effectiveness?

Q:

Research for finance & decarbonization on ANZ There is no strict requirement for the writing format, but your analysis may include an introduction, main body with suitable headings or sub - headings,...

Q:

What do you think is the major decision that a marketing manager should consider when developing an advertising program

Q:

=+2. You want to produce a great portfolio of work for your summer social media internship application with the Green Bay Packers. Outline some steps to take to make yourself a strong candidate for...

Q:

=+crisis on its official social media accounts. Analyze the situation based on what is discussed on social media and in the traditional media, and provide a brief overview of the situation. Outline...

Q:

=+4. You are working for a crisis communication firm, and you find out your client (Kevin Spacey) has become a trending topic on social media due to a significant personal scandal along with the...