Homework Answers
Option - 'B'; Must recognise all leases in their balance sheet.
Under a new AASB 16, lessee shall recognise all leases ( including property and equipment ) on balance sheet as a new 'right of use asset' and 'lease liability'. Small value assets and short-term leases are excluded.
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Under AASB 16, a lessee: Only eecognises a leased asset on their balance sheet because the...
No C. D. No No Yes [51 On January 1, Year 1, Lessee entered into a 4-year lease and did not incur...
No C. D. No No Yes [51 On January 1, Year 1, Lessee entered into a 4-year lease and did not incur initial direct costs. At the lease commencement date, Lessee A. Must discount the lease payments using the lessor's incremental borrowing rate. B. Recognizes the same amount for the right-of-use asset and the lease liability under a finance lease and an operating lease. C. Applies different accounting for initial measurement of a right-of-use asset under finance and operating leases....
On 1 July 20X1 Lessee Ltd leased some equipment from Lessor Ltd. The details of the...
On
1 July 20X1 Lessee Ltd leased some equipment from Lessor Ltd. The
details of the lease arrangement are as follows: The lease term was
for 8 years • The interest rate implicit in the arrangement was 6%
• The lessee paid an amount of $46,000 per annum to the lessor
commencing on 1 July 20X1 • The residual value at the end of the
lease term was $25,000 of this, an amount of $16,000 was guaranteed
by the lessee...
3. Effects of leasing on financial statements Aa Aa Leasing is often referred to as off-balance-sheet...
3. Effects of leasing on financial statements Aa Aa Leasing is often referred to as off-balance-sheet financing because of the way that the transaction is treated and reported in financial statements. Which of the following statements best describes the characteristics of off-balance-sheet financing? O Only the leased liabilities but not the leased assets under the lease contract appear directly on the firm's balance sheet. O Both the leased assets and the leased liabilities under the lease contract appear directly on...
Based on the scripture who is the ultimate owner of the land or leased asset? What consequences might the lessee face i...
Based on the scripture who is the ultimate owner of the land or leased asset? What consequences might the lessee face if they do not report use of the asset accurately? “The land must not be sold permanently, because the land is mine and you reside in my land as foreigners and strangers.” Leviticus 25:23 (New International Version)
When a lessee makes an entry at the beginning of a lease, which of the following...
When a lessee makes an entry at the beginning of a lease, which of the following are included in the amount that will be recorded as both a right-of-use asset and a lease liability? (Select all that apply.) Check All That Apply Fair value of the asset leased Fair value of the asset leased Present value of a cash payment expected to be made at the end of the lease term because of a guaranteed residual value Present value of...
Can a lessee establish a Right-Of-Use-Asset under an operating lease?
Can a lessee establish a Right-Of-Use-Asset under an operating lease?
When a lessee makes an entry at the beginning of a lease, which of the following are included in the amount that will be...
When a lessee makes an entry at the beginning of a lease, which of the following are included in the amount that will be recorded as both a right-of-use asset and a lease liability? (Select all that apply.) Fair value of the asset leased Present value of a cash payment expected to be made at the end of the lease term because of a guaranteed residual value Present value of expected residual value Present value of periodic lease payments Sum...
The following facts pertain to a noncancelable lease agreement between Groh Leasing Company and MS Cody Company, a calendar year lessee. January 1, 2013 S37,000 Inception date: Annual lease-paym...
The following facts pertain to a noncancelable lease agreement between Groh Leasing Company and MS Cody Company, a calendar year lessee. January 1, 2013 S37,000 Inception date: Annual lease-payment due at the beginning of each year, beginning with January 1,2013 including $2000.00 of executory costs Lease term Economie life of leased equipment Bargain purchase option Fair value of asset at January 1, 2013 Lessor's implicit rate (known to lessee) Lessee's incremental borrowing rate 4 years 5 years $5,000 $125,455 10%...
When a lessee is accounting for a capital (finance) lease a) a guaranteed residual value is...
When a lessee is accounting for a capital (finance) lease a) a guaranteed residual value is excluded from the “minimum lease payments.” b) an unguaranteed residual value is excluded from the “minimum lease payments.” c) a guaranteed residual value is basically an additional lease payment due at the end of the lease. d) the present value of any guaranteed residual is deducted from the leased asset cost in determining the depreciable amount. In calculating depreciation of a leased asset, the...
Exercise 15-3 (Algo) Finance lease; lessee; balance sheet and income statement effects [LO15-2] On June 30,...
Exercise 15-3 (Algo) Finance lease; lessee; balance sheet and
income statement effects [LO15-2]
On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse
equipment from IC Leasing Corporation. The lease agreement calls
for Georgia-Atlantic to make semiannual lease payments of $464,149
over a four-year lease term, payable each June 30 and December 31,
with the first payment at June 30, 2021. Georgia-Atlantic's
incremental borrowing rate is 8%, the same rate IC uses to
calculate lease payment amounts. Amortization is recorded on...
No C. D. No No Yes [51 On January 1, Year 1, Lessee entered into a 4-year lease and did not incur initial direct costs. At the lease commencement date, Lessee A. Must discount the lease payments using the lessor's incremental borrowing rate. B. Recognizes the same amount for the right-of-use asset and the lease liability under a finance lease and an operating lease. C. Applies different accounting for initial measurement of a right-of-use asset under finance and operating leases....
On
1 July 20X1 Lessee Ltd leased some equipment from Lessor Ltd. The
details of the lease arrangement are as follows: The lease term was
for 8 years • The interest rate implicit in the arrangement was 6%
• The lessee paid an amount of $46,000 per annum to the lessor
commencing on 1 July 20X1 • The residual value at the end of the
lease term was $25,000 of this, an amount of $16,000 was guaranteed
by the lessee...
3. Effects of leasing on financial statements Aa Aa Leasing is often referred to as off-balance-sheet financing because of the way that the transaction is treated and reported in financial statements. Which of the following statements best describes the characteristics of off-balance-sheet financing? O Only the leased liabilities but not the leased assets under the lease contract appear directly on the firm's balance sheet. O Both the leased assets and the leased liabilities under the lease contract appear directly on...
The following facts pertain to a noncancelable lease agreement between Groh Leasing Company and MS Cody Company, a calendar year lessee. January 1, 2013 S37,000 Inception date: Annual lease-payment due at the beginning of each year, beginning with January 1,2013 including $2000.00 of executory costs Lease term Economie life of leased equipment Bargain purchase option Fair value of asset at January 1, 2013 Lessor's implicit rate (known to lessee) Lessee's incremental borrowing rate 4 years 5 years $5,000 $125,455 10%...
Exercise 15-3 (Algo) Finance lease; lessee; balance sheet and
income statement effects [LO15-2]
On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse
equipment from IC Leasing Corporation. The lease agreement calls
for Georgia-Atlantic to make semiannual lease payments of $464,149
over a four-year lease term, payable each June 30 and December 31,
with the first payment at June 30, 2021. Georgia-Atlantic's
incremental borrowing rate is 8%, the same rate IC uses to
calculate lease payment amounts. Amortization is recorded on...
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