What entry is required for the lessor in a operating lease? A) Gainloss on asset

ID: 2391405 • Letter: W

Question

What entry is required for the lessor in a operating lease? A) Gainloss on asset sale. B) Loan receivable. C) Interest income. D Depreciation expense. What is the meaning of "minimum lease payments"? A) Payments over the lease term including executory costs B) Payments over the lease term excluding executory costs. C) Payments over the lease term until the bargain purchase option is exercised. D) Payments over the lease term until guaranteed residual value is received. 1.2 ??: Which entry is needed by the lessee for an operating lease? A) Recording of interest expense. B) Recording of the lease obligation. C) Recording of rental expense. D) Recording of depreciation expense. 13

Explanation / Answer

Answer 1.1: Correct answer is option D

Answer 1.2: Correct answer is option D

Answer 1.3: Correct answer is option C

Answer 1.4: Correct answer is option A

Answer 1.5: Correct answer is option C

Answer 1.6: Correct answer is option B

Tax recoverable

Profit/Loss

Tax rate

Tax

2,00,000

30%

60,000

35%

21,000

2,60,000

81,000

Answer 1.7: Correct answer is option C

Answer 1.8: Correct answer is option B

Answer 1.9: Correct answer is option D

Answer 1.10: Correct answer is option A