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- What is leasing? Explain the process of leasing’s Underwriting process of Tenants.What is lease rent and lease income? Do I have to record initial direct costs when I record payment? Do I need to derecognize the asset?For a(n) ________ lease, a lessor recognizes revenue on the sale and records the asset, ________ lease. It also removes the leased asset from its accounts and records the ________. Group of answer choices sales-type; net investment in lease–sales-type; cost of goods sold finance; gross investment in lease–sales-type; cost of goods sold operating; net investment in lease–sales-type; cost of goods sold sales-type; finance; revenue
- Which are the effects of Tenant Improvements and Free Rents on FFO?A lease agreement whereby the lessee recognized rent expense which is always equal to the rent income recognized by the lessor at a given period of time. Group of answer choices Terminating lease Operating lease Finance lease Sale type leaseUnder an operating lease, the lessee recognizes a ____________ when the aggregate rental payments is lower than the cumulative rental expense. Rent Payable Prepaid Rent Unearned Rent Income Rent Receivable
- Residential rental property is rental property where at least what percentage of the income comes from the rental of dwelling units?It is that portion of the lease payments that is not fixed in amount but isbased on a factor other than just the passage of time, for example,percentage of sales, amount of usage, price index and market rate ofinterest A. Variable rentB. Contingent rentC. Bargain purchase optionD. Executory costWhen a lessor receives cash on an operating lease, which of the following accounts is increased? A. Lease Payable B. Interest Revenue: Leases C. Lease Receivable D. Rent Revenue
- Define each of the following terms: a. Lessee; lessor b. Operating lease; financial lease; sale-and-leaseback; combination lease; synthetic lease; SPE c. Offbalance sheet financing; capitalizing d. FASB Statement 13; ASU 2016-02 e. Guideline lease f. Residual value g. Lessees analysis; lessors analysis h. Net advantage to leasing (NAL) i. Alternative minimum tax (AMT)Which of the following describes the expenses of a triple net lease tenant? the tenant does not have any additional expenses beyond the rent specified on the lease rent + property taxes rent + maintenance rent + property taxes + insurance + maintenancea leasing contract, many costs to the tenant are not included in the base rent. These extra costs will amount to a large part of the total payment. What kind of lease would this be? a) Percentage lease b) Net lease c) Gross lease d) Variable lease
