Question: Ted Ltd signed a contract with Mark Ltd. The contract requires Mark Ltd to transport a specified quantity of goods of Ted Ltd by using

Ted Ltd signed a contract with Mark Ltd. The contract requires Mark Ltd to transport a specified quantity of goods of Ted Ltd by using 10 specified rail cars in accordance with a stated timetable for a period of five years. Mark Ltd provides the rail cares, driver and engine as part of the contract. The contract states the nature and quantity of the goods to be transported as well as the type of rail car to be used to transport the goods. Mark Ltd has a large pool of similar cars that can be used to fulfil the requirements of the contract. Mark Ltd can choose to use any one of a number of engines to fulfil the requests from Ted Ltd. The engine could be used to transport not only the goods of Ted Ltd, but also the goods of other customers. The cars and engines are stored at Mark Ltd's premises when not being used to transport goods. Required: In accordance with AASB 16 Leases, should the contract between Ted Ltd and Mark Ltd be treated as a lease contract in Ted Ltd.'s books? Explain your reasoning Ted Ltd signed a contract with Mark Ltd. The contract requires Mark

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!

For the plane truss shown in Figure P3-34, node 2 settles an amount ( = 0.02 in. Determine the forces and stresses in each element due to this settlement. Let E = 30 106 psi and A = 2 in2 for each...

1. You are currently working on a contract for one of your clients, MAC Co. Consistent with your other clients, you have decided to account for the contract using the percentage of completion method....

4) Parktown Realty Inc developed an upscale condominium complex. On October 1, Miranda Wine signed an offer to purchase one of the units. Part of that document said, "This offer is irrevocable by the...

TRANSACTION FACTS Itis the year 2028. The date you are considering these facts is at 1 June 2028. ARC Technologies Pty Ltd (ARC) is incorporated and based in Australia and provides engineering...

You must answer the two problem-type questions below, using the ILAC (Issues, Law, Application, Conclusion) format, a worked example of which is in the Resources folder. Please note that the word...

QUESTION: WRITE EXECUTIVE SUMMARY FOR CUCINA LTD PROJECT 300 WORDS MSC Applied Research Project Cucina Ltd. Competitive advantage through data integrity Company History Cucina Ltd. is an Irish...

Please answer this task: > UNDERSTANDING OF REQUIREMENTS This task is highlighted in red ink on page 10. Overview of each session page. MSc Applied Research Project Cucina Ltd. Competitive advantage...

MSc Applied Research Project Please answer question (C) Introduction: Section A Fri 31st Jan 2020 Teams should prepare a 10 minute presentation: Venue: Safari Annexe O'Donovan's Road Time:...

How does formulating a research design differ from developing an approach to a problem?

Wade Company estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $7, direct labor $13, and overhead...

Find the given higher - order derivative. f ' ' ( x ) = 8 - 3 x f ' ' ' ( x ) =

Your Role You are an actuarial student in the group life department of MutualOne, an insurance company in the United States. Most of your communication is directed to your immediate supervisor, so it...

Assignment Chapter 10-Defendant's First Set of Interrogatories to Plaintiff Use the fact pattern from Chapter 5 and 6 for this Assignment and draft Defendant's First Set of Interrogatories to...

Kasper is a trustee of the Lantry Charitable Trust. In February 2019, he draws 10,000 of the trust's money (in breach of the trust) and pays it into his own bank account in which he already has...

Alex is shopping at Ozone Galleria Mall. There is a dedicated cubicle for a type of product at the shopping center. All the products sold at the ith cubicle are priced the same, denoted by prices[i]....

Using the information below, complete the case study. Fillable TPT-EZ form (opens in a new tab) Arizona Business Property Statement(opens in a new tab) Exemption Certificate Form(opens in a new tab)...

In Myanmar (formerly Buma), five laborers, each making the equivalent of $7.00 per day, can produce 40 units per day. In China, nine laborers, each making the equivalent of $3.50 per day, can produce...

4. Present multiple themes at once. Then you will get to know a little about how others think, when some of the themes are rejected.

5. Get a third party to mediate, so that both parties have the opportunity to go back to their original negotiating point that they had before the third party put forward his/her proposal.

1. Discuss the following statements: a) What we seek to achieve is different from why we seek to achieve it. b) Thoughts are different from what we are thinking about. c) Writing to find out what one...