Asked Jan 25, 2020

Explain the difference in lessor income statement presentation for a sales-type versus operating lease.


Expert Answer

Step 1

Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of time is provided by the owner of the asset to the user of the asset. The owner, who possesses the asset, is termed as `Lessor' and user, to whom the right is transferred to, is termed as `Lessee'.

Sales type lease: It is a kind of lease, in which the lessor transfers the control ...

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