EQUIP AND PROPERTY UNDER CAPITAL LEASES Flight Equipment: $641 (mill) Other Equipment: $200 (mill) 2. A) Individual components of PPE: (range of estimated useful lives #5) a. American jet aircraft and engines (20-30 years) b. Other regional aircraft and engines (16-20 years) c. Major rotable parts‚ avionics‚ and assemblies (Life of equip to which applicable) d. Improvements to leased flight equipment (Lesser of remaining lease term or expected useful life)
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business in the rail industry. Power by the Mile Leasing Arrangements Leasing of equipment for some companies can be advantageous. Depending on the lease terms‚ some firms can have great success with leasing the equipment they use due to the fact that the leasing company provides services and maintenance of the equipment they lease. This feature of a lease can be cost effective to the company leasing the equipment in a sense that the company does not have to maintain payroll of maintenance personnel
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video game‚ you lease 50‚000 square feet in an office building from Commercial Property‚ LLC‚ under a written five-year lease. Your goal is to put the game on the market within two years. Several months into the term‚ a competitor unexpectedly releases a new game title featuring play that would make your game appear to be a poorly crafted imitation. Can you assign the lease to another party? Explain. You would need the landlord here to get approval to an assignment of the lease. Any task would
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Capital Leases If any of the following criteria are met‚ a lease must by classified as a capital l ease: 1. Ownership of the property is transferred to the lessee at the end of the term‚ o r 2. The lease contains an option to purchase the property for less than fair market value‚ o r 3. The lease term is greater than 75 percent of the property’s estimated economic life‚ o r 4. The present value of the lease payments exceeds 90 percent of the fair market value of the property. Operating Leases Any
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THIRD DIVISION [G.R. No. 154765. March 29‚ 2007.] PEDRO T. BERCERO‚ petitioner‚ vs. CAPITOL DEVELOPMENT CORPORATION‚ 1 respondent. D E C I S I O N AUSTRIA-MARTINEZ‚ J p: Before the Court is a Petition for Review on Certiorari under Rule 45 of the Revised Rules of Court assailing the Decision 2 dated February 11‚ 2002 of the Court of Appeals (CA) in CA-G.R. CV No. 56484 which set aside the Decision 3 dated May 27‚ 1996 of the Regional Trial Court‚ Branch 88‚ Quezon City (RTC-Branch 88) in Civil Case
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How do we account for it? Accounting at McCloud Winery Accounting for a lease Capital lease – Treated as an acquisition of the asset financed by a loan Operating lease – Treated as a rental agreement A leas is a capital lease if 1. 2. 3. – – There exists a bargain purchase option at the end of the lease The lease covers more than 75% of the economic life of the asset The PV of future lease payments is at least 90% of the market value of the asset Only one condition
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you believe is a terrific idea for a video game‚ you lease 50‚000 square feet in an office building from Commercial Property‚ LLC‚ under a written five-year lease. Your goal is to put the game on the market within two years. Several months into the term‚ a competitor unexpectedly releases a new game title featuring play that would make your game appear to be a poorly crafted imitation. Can you assign the lease to another party? Explain. A leases is a transfer of real property by a landlord to a tenant
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BF 1203 TRANSACTION IN ISLAMIC BANKING & FINANCE FACULTY OF BUSINESS AND MANAGEMENT OF SCIENCES TOPIC: IJARAH Done by: Muhammad Hibatul Hakimi b Haji Suhaili (10B0911) Contents Introduction 1 Basis of Ijarah 2 Essential elements of ijarah contract 2 Modus Operandi 3 3 Selected Banks 4 Conclusion 6 Bibliography 6 Introduction An Islamic alternative to conventional leasing is ijarah. Ijarah is a derivative of the Arabic words ‘ajr’ and ujrah which means consideration
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24—Investments‚ Leases‚ and Full Disclosure Multiple-choice 1. The lessor capitalizes and amortizes initial direct costs for all types of leases except: a. direct-financing leases. b. operating leases. c. there are no exceptions. d. sales-type leases. 2. Johnson‚ Inc.‚ leased an asset to Raymond Corporation. The cost of the asset to Johnson was $8‚000. Terms of the lease specify four-year life for the lease‚ an annual interest rate of 15 percent‚ and four year-end rental payments. The lease qualifies as
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was going to be $240 each. Salesman B proposed to lease the golf carts for $500 dollars per cart per year. This was payable at the end of the year for five years and the contract could be cancelled at any time with 90 days notice. This deal was easier to get out of. Either way $420 dollars in costs per cart per year were expected and revenue of $84000 per year was expected. EXECUTIVE SUMMARY This case concerns whether to buy golf carts or lease golf carts. The financial implications are different
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