For a sale-leaseback transaction for which the lease qualifies as a capital lease, the seller-lessee should account for any gain on the sale of the asset as a gain to be
A) to be recognized immediately.
B) to be deferred and amortized in proportion to the lease payments over the lease term.
C) to be deferred and amortized in proportion to the amortization of the leased asset.
D) to be recorded directly as an increase to Retained Earnings.
C
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Indicate whether the statement is true or false.
What of the following is an argument often made against the fair trade system?
a. It is too easy to use fair trade to enrich developed country producers. b. It shows favoritism to the least developed countries. c. It lacks proper focus on environmental protection. d. It ignores regional differences in pricing.
[The following information applies to the questions displayed below.]Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank. 3) Earned $650 of revenues. 4) Paid expenses of $250. 5) Paid a $50 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)1) Issued an additional $325 of common stock. 2) Repaid $220 of its debt to the bank. 3) Earned revenues of $750. 4) Incurred expenses of $360. 5) Paid dividends of $100. What is the after-closing amount of retained earnings that will be reported on Packard's balance sheet at the end of Year
2? (Assume that closing entries have been passed). A. $640 B. $740 C. $800 D. $290
Unless you convince audience members that your presentation has ______, the information you offer will fall on deaf ears.
a. humor b. relevance c. excitement d. consequences