X 120C Intermediate Accounting Theory & Practice Winter 2013 Quiz 2 Chapter 20 Chapter 21 True-False Conceptual – 40 questions Multiple Choice Conceptual – 40 questions STUDENT NAME:__RUPALI KAYPEE_______________________________ TRUE-FALSE—Conceptual Chapter 20 1. A pension plan is contributory when the employer makes payments to a funding agency. F 2. Qualified pension plans permit deductibility
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Good morning‚ In regards to the current lease of your office building expiring and potential plans for a lease extension‚ I have done research using the FASB Codification to answer your questions below. 1. If you take the approach to make an up-front payment to the lessor of $2.3 million and extend the lease at current terms for another ten years‚ you will in effect have a new lease. Under the guidance of ASC 840-10-35‚ the extension of the lease is viewed as a new agreement and the classification
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Subject : Financial Accounting Ⅱ Lease agreement between NeedsLease and HasSpace NeedsLease is renting a space for its corporate office from HasSpace by entering into a lease agreement. The agreed lease term is for 10 years and there is no option to renew nor is the ability to negotiate renewal of the term. According to ASC 840 (5F of statement 13)‚ the lease is classified as operating lease. The agreement includes two provisions that may require NeedsLease to perform certain activities at its
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BonneSante S.A. 1. How well do the chief accountant’s assumed lease characteristics line up with the company’s past lease term experience? Illustration 1: The truck lease would be accounted for as a regular equipment lease with the interest every month. Truck Rental Expense 800 Interest Expense 40 Cash 840 Illustration 2: If we determine the probability of lease terms‚ for 60% the lease will be for 6 years‚ so we will use 6 years as the lease term. Then the initial direct cost is factored into total
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COMPREHENSIVE EXAMINATION E PART 5 (Chapters 18-21) Approximate Problem Topic Time E-I Long-Term Contracts. 15 min. E-II Installment Sales Method. 20 min. E-III Deferred Income Taxes. 25 min. E-IV Pensions. 15 min. E-V Leases. 25 min. 100 min. Problem E-I — Long-Term Contracts. Edwards Company contracted on 4/1/14 to construct a building for $2‚400‚000. The project was completed in 2016. Additional data follow: 2014 2015 2016 Costs incurred
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with respect to a lease which formerly would have been regarded as equitable only (effectively an agreement to grant a lease rather than one in proper legal form). Facts:The Defendant on the 29th of May 1879‚ agreed to grant and the Plaintiff to accept a lease of a mill for seven years at the rent of 30s. a year for each loom run‚ the Plaintiff not to run less than 540 looms. The lease to contain such stipulations as were inserted in a certain lease of-the 1st of May‚ which was a lease at a fixed rent
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Ewe Chin Leong on behalf of The Estate of Ewe Kim Sum‚ deceased‚ 47A‚ School Lane‚ 11600 George Town‚ Penang. December 4th. 2012 Attn. Mr. Tomis Peter Samat Director of the Complaints Secretariat Advocates & Solicitors Disciplinary Board 8t" and 9th Floor Wisma Maran 28 Medan Pasar 50050 Kuala Lumpur. ... Dear Sir‚ Complaint No. DB/12/7737 Complaint Against Messr. Gurunam Singh & Co. Respondent : 1. Mr. Gurunam Singh s/o Joginder Singh 2. Mr. Ganeson a/l Manickam
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salvage value of $30‚000.00. This also includes the cost of financial leasing over the equipment. Alternative Courses of Action To buy the equipment To lease the equipment (WITHOUT Buying Purchase Option) To lease the equipment (WITH Buying Purchase Option) Recommendation 1. What are the different kinds of leases available and which one would be best suited for Paulo’s restaurant? Explain why? 2. Calculate the net advantage to leasing (NAL) the restaurant equipment
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Purchase vs. Lease Thomas Belton‚ Dean Wilhelm‚ Ernest Williams‚ Luis Franco Finance for Business FIN/370 01/26/2015 Rodney Nelsestuen Purchase vs. Lease According to “Lease Agreement (2014)‚ a lease “is a contract between a lessor and lessee that allows the lessee rights to the use of a property owned or managed by the lessor for a period of time. The mutual agreement between two parties does not give ownership rights to the lessee‚ though the owner or lessor can at times allow special
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entered into an agreement to lease a D9 Bulldozer to Albert Ltd. The lease agreement details are as follows: Length of lease 5 years Commencement date 1 July 2010 Annual lease payment‚ payable 30 June $8‚000 each year commencing 30 June 2011 Fair value of the bulldozer at 1 July‚2010 $34‚797 Estimated economic life of the bulldozer 8 years Estimated residual value of the plant at the $2‚000 end of its economic life Residual value at the end of the lease term‚ of which 50%
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