Question: This is a sales - type lease to lessor because: The present value of the lease payments is bigger than 9 0 % of the

This is a sales-type lease to lessor because:
The present value of the lease payments is bigger than 90% of the fair value of the leased property
The collectibility of the payments is probable and lessor's performance is complete.
The lease term of the leased asset is greater than 75% of the estimated economic life of the leased asset.
All of the above.
This is a sales - type lease to lessor because:

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:

The following facts pertain to a noncancelable lease between JK Co. and Lessor Inc. Inception date Annual lease payment due each January 1, beginning with 1/1/2010 January 1, 2010 (excluding...

Q:

The following facts pertain to a noncancelable lease between JK Co. and Lessor Inc 1/1/2010 Inception date Annual lease payment due each January 1, beginning with January 1, 2010 (excluding executory...

Q:

UESTION 4 Essee with a finance lease in which ownership of the asset transfers to the lessee at the end of the lease should amortize the leased asset over the: asset's remaining useful life. term of...

Q:

On January 1, Year 1, Multi Ventures (MV) leased an asset with eight-year useful life, a fair value of $300,000 and a cost of $240,000 from Leases R Us (LRU) for six years. The lease calls for annual...

Q:

On January 1, 2017, Lavery Corp., which follows ASPE, leased equipment to Flynn Ltd., which follows IFRS 16. Both Lavery and Flynn have calendar year ends. The following information concerns this...

Q:

Sentry, Inc., acquires for $2,300,000 in cash, the net assets of New Equipment Company. The acquisition is made on December 31, 2011, at which time New Equipment has prepared the following balance...

Q:

Question 2 On January 1, 2021, White Star Heavy Machines company leased a Machine to Little Star Appliances Company. Below is more information: (a) The fair value of the machine was $ 1,007,560. (b)...

Q:

Question 2 At January 1, 2020 McGregor leased a Machine to Sun Rise Metals Company. Below is more information: (a) The fair value of the machine was $ 2,014,560. (6) The lease agreement specifics...

Q:

At January 1, 2020 McGregor leased a Machine to Sun Rise Metals Company. Below is more nformation: (a) The fair value of the machine was $ 2,014,560. (b) The lease agreement specifics annual rental...

Q:

At January 1, 2020 McGregor leased a Machine to Sun Rise Metals Company. Below is more information: (a) The fair value of the machine was $ 2,014,560 . (b) The lease agreement specifics annual rental...

Q:

1. Please write down briefly what fiduciary ownership is. In which capital markets instrument does the Capital Markets Law refer to this sort of relationship? 2. What is registered capital? How it...

Q:

A partnership of attorneys in the St. Louis, Missouri, area has the following balance sheet accounts as of January 1, 2011: According to the articles of partnership, Athos is to receive an allocation...

Q:

Recommend suggestions and how to avoid ethics issues. One significant ethical issue in project management within Fortune 500 companies is the misrepresentation of project progress and financial...

Q:

What are some food related health care issues that inner cities are more likely to see than more affluent areas? Why are certain areas most likely to experience inadequate healthy food options than...