Solved: Capital lease-gain recognized by bean, Finance Basics

+44 141 628 6080
[email protected]

Capital lease-gain recognized by bean

Problem: If the Bean Company sells an asset to Corn Company for a profit of $175,000 and immediately leases it back with a capital lease, the gain is recognized by Bean:

immediately as an extraordinary gain.
immediately as an ordinary gain.
over the life of the lease in proportion to the rental payment.
over the life of the lease using the same rate and life used to amortize the leased asset.

Solution Preview :

Prepared by a verified Expert

Finance Basics: Capital lease-gain recognized by bean

Reference No:- TGS02058284

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Cost recovery questions

Discuss the following cost recovery questions:Whether property that is classified as personal is subject to cost recovery.

Q : Summarize the child online protection act

Summarize the Child Online Protection Act (COPA) and the Children's Internet Protection Act (CIPA)

Q : What is the exact dollar and cents total product

Related to the Holding Costs formula - If Interest rate (hurdle rate too if you like) is 9%; Price per unit is $800; Units in inventory are 700

Q : Firm having total costs

A firm has Total Costs (TC) of $12,000 over the next three months (TOTAL for the 3 months - not per month)

Q : Capital lease-gain recognized by bean

Corn Company for a profit of $175,000 and immediately leases it back with a capital lease, the gain is recognized by Bean:

Q : Review-at and t stephenson shows businesses can not solve

What are some best practices that are shared that can be adopted by any organization?

Q : Necessary entries to clear the intangible assets

Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.

Q : Prepare an income statement for cathy chen

Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2009.

Q : Leasing with debt or equity finance

Compare and contrast leasing with debt or equity finance.

1934434

Questions
Asked

3,689

Active Tutors

1435041

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Teaching an adult client with type 1 diabetes mellitus

The nurse is teaching an adult client with type 1 diabetes mellitus about the need for eye examinations.

Outcome of the pregnancy of an adolescent client

Question: Which factor may have a permanent effect on the outcome of the pregnancy of an adolescent client?

Teaching regarding the use of oral contraceptives

Question: Which statement confirms the client understands the teaching regarding the use of oral contraceptives?

Problem concerning antibody screening test

At her first prenatal clinic visit, a primigravida has blood drawn for a rubella antibody screening test, and the results are positive.

Client has suffered a head injury

The nurse is admitting a client into the emergency room who has suffered a head injury. Which of the following assessment findings would indicate

Patient with advanced cancer has several morphine orders

A patient with advanced cancer has several morphine orders to manage pain. There is a continuous infusion ordered to run at 6 mg per hour

Client undergoes a modified radical mastectomy

A 36-year-old client undergoes a modified radical mastectomy. The nurse determines that the client understands the schedule for self-examination