FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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Chapter 10, Problem 17E
1.
Summary Introduction
Introduction: A agreement made on contractual basis between a lessor and a lessee that grant lessee the right to use the asset for a time period in return for cash payments.
To Identify: The type of lease if lesser retains the title of the assets.
Summary Introduction
Introduction: A agreement made on contractual basis between a lessor and a lessee that grant lessee the right to use the asset for a time period in return for cash payments.
To Identify: The type of lease if title is transferred to the lessee.
3.
Summary Introduction
Introduction: A agreement made on contractual basis between a lessor and a lessee that grant lessee the right to use the asset for a time period in return for cash payments.
To identify:The type of lease.
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indicate whether the company has entered into a finance lease oran operating lease. The lessor retains title to the asset, and the lease term is 3 years on an asset that has a 10-year useful life.
Keeping in view the IAS-17, classify the following transactions with reasons into
operating lease or finance lease:
LB Limited has obtained a generator for official lease for 2 year period whose useful life
is 5 years.
The C Ltd. has acquired an asset on lease the ownership of which will be transferred
to the company at the end of lease term.
iii.The D Itd. has acquired an asset on lease with an option to buy it at the end of lease
term at scrap value.
iv The Z Ltd. has acquired an asset on lease for 9 years. The economic life of the asset
is 10 years. The company has no intention to purchase it at the end of lease term.
vX Ltd. has acquired an asset with annual lease payment of Rs. 50,000 for ten years
whereas the fair value of the asset is Rs. 210,000
Keeping in view the IAS-17, classify the following transactions with reasons into
operating lease or finance lease:
LB Limited has obtained a generator for official lease for 2 year period whose useful life
is 5 years.
The C Ltd. has acquired an asset on lease the ownership of which will be transferred
to the company at the end of lease term.
iii.The D Itd. has acquired an asset on lease with an option to buy it at the end of lease
term at scrap value.
iv.The Z Ltd. has acquired an asset on lease for 9 years. The economic life of the asset
is 10 years. The company has no intention to purchase it at the end of lease term.
vX Ltd. has acquired an asset with annual lease payment of Rs. 50,000 for ten years
whereas the fair value of the asset is Rs. 210,000
Chapter 10 Solutions
FINANCIAL ACCT-CONNECT
Ch. 10 - What is the main difference between notes payable...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
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