carrying amount of the finance lease liability from the capitalization of a lease would be periodically reduced by a. Potion of the lease payment allocable to the interest b. Portion of the lease payment allocable to reduction of the lease liability c. Total lease payments d. Depreciation of the asset

carrying amount of the finance lease liability from the capitalization of a lease would be periodically reduced by a. Potion of the lease payment allocable to the interest b. Portion of the lease payment allocable to reduction of the lease liability c. Total lease payments d. Depreciation of the asset

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 6MC: In the third year of a 6-year finance lease, the portion of the lease payment applicable to the...

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At its inception, the lease term of Lease G is 65% of the estimated remaining economic life of the leased property. This lease contains a purchase option that is reasonably expected to be exercised. The lessee should record Lease G as: a. neither an asset nor a liability b. an asset but not a liability c. an expense d. an asset and a liability
In the third year of a 6-year finance lease, the portion of the lease payment applicable to the reduction of the lease liability should be: a. less than in the second year b. more than in the second year c. the same as in the fourth year d. more than in the fourth year
The carrying amount of the finance lease liability from the capitalization of a lease would be periodically reduced by? Depreciation of the asset Total lease payments Potion of the lease payment allocable to the interest Portion of the lease payment allocable to reduction of the lease liability
The carrying amount of the right of use asset from the capitalization of a lease would be periodically reduced by a. Portion of the lease payment allocable to reduction of the lease liability b. Total lease payments c. Potion of the lease payment allocable to the interest d. Depreciation of the asset
The carrying amount of the right of use asset from the capitalization of a lease would be periodically reduced by? Portion of the lease payment allocable to reduction of the lease liability Portion of the lease payment allocable to the interest Total lease payments Depreciation of the asset
The interest expense of the lessee during the year when payment is made in advanced shall be: O Lease liability at inception of the lease multiplied by implicit rate of interest. O Total present value of lease liability after initial payment multiplied by effective rate of interest. O Cost of ROUA plus PV of restoration cost multiplied by implicit rate of interest. O Annul lease payment divided by implicit rate of interest multiplied by effective rate.
The lessee normally measures the lease liability to be recorded as the: Select one: a. Present value of the minimum lease payments. b. The future value of the minimum lease payments c. The fair market value of the leased asset. d. The sum of the cash payments over the term of the lease.
The interest expense of the lessee during the year when payment is made in advanced shall be: Group of answer choices Lease liability at inception of the lease multiplied by implicit rate of interest. Total present value of lease liability after initial payment multiplied by effective rate of interest. Annul lease payment divided by implicit rate of interest multiplied by effective rate. Cost of ROUA plus PV of restoration cost multiplied by implicit rate of interest.
Under a direct financing lease, the excess of aggregate rentals over the cost of the leased property shall be recognized as interest income of the lessor A)in increasing amounts during the lease term B)after the cost of the leased asset has been fully recovered through rentals C)in decreasing amounts during the lease term D)in constant amounts during the lease term
Under a direct financing lease, the excess of aggregate rentals over the cost of the leased property shall be recognized as interest income of the lessor in increasing amounts during the lease term after the cost of the leased asset has been fully recovered through rentals in constant amounts during the lease term in decreasing amounts during the lease term
The difference of gross investment in the lease and net investment in the lease of the lessor is? A. Total amount of interest that the lessee shall recognized as interest expense over the lease term. B. Interest income at inception of the lease. C. Total amount of interest that the lessor shall recognized as interest income over the lease term. D. Initial direct cost.
Each period of a finance lease, the lessee records a lease expense that includes which of the following? Group of answer choices Interest expense on the lease liability, using the effective interest rate method and the discount rate it used to compute the present value of the liability at the lease commencement date; variable lease payments not included in the lease liability in the period in which the obligation for the variable payments is incurred; and changes in variable lease payments that depend on an index or rate. Neither A nor B is correct. Interest expense on the lease liability, using the effective interest rate method and the discount rate it used to compute the present value of the liability at the lease commencement date; variable lease payments not included in the lease liability in the period in which the obligation for the variable payments is incurred. Both A & B are correct.