Final Recap Quiz - LEASES LESSOR 1 What are the differences...

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LEASES - LESSOR 1 What are the differences between a Direct Financing Lease and a Sales Type Lease? 2 Direct Financing What is the typical JE for a lease at inception. What is the typical JE for a lease payment? 3 Sales Type Lease What is the typical JE for a lease at inception What is the typical JE for a lease payment? INCOME TAXES TIP ON CALCULATING TAX EXPENSE AND TAX LIABILITY If you create 2 columns as below, one is Financial Income and one is Taxable Income Net Financial Income Net Taxable Income This multiplied by tax rate = Tax Expense This multiplied by tax rate = Tax Payable Debit Entry Credit Entry The difference between these two entries are the deferred tax or deferred liability entries. If you create these 2 columns you will always have 2 of your accounting entries. 4 If Financial Income > Taxable Income, do we have a Deferred Tax Asset or Deferred Tax Liability ? Give examples of situations that can create this situation What is the typical JE to record this type of transation 5 Financial Income < Taxable Income, do we have a Deferred Tax Asset or Deferred Tax Liability ? Give examples of situations that can create this situation What is the typical JE to record this type of transation 6 Explain the principle of NOL carrybacks and carryforwards.
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