Special accounting problems special accounting

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Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-47 Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems Illustration (LESSOR) Prepare all of the journal entries for the  Exceptional for 2007 and 2008.
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Chapter 15-48 Primary difference between a direct-financing lease and a  sales-type lease is the manufacturer’s or dealer’s gross  profit (or loss). Lessor records the sale price of the asset, the cost of goods sold  and related inventory reduction, and the lease receivable. Difference in accounting for guaranteed and unguaranteed  residual values. Sales-Type Leases (Lessor) Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-49 Present value of the minimum lease payments must include the  present value of the option. Only difference between the accounting treatment for a bargain  purchase option and a guaranteed residual value of identical  amounts is in the computation of the annual depreciation. Bargain Purchase Option (Lessee) Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-50 The accounting for initial direct costs:  For  operating leases , the lessor should defer initial direct  costs. For  sales-type leases , the lessor expenses the initial direct  costs. For a  direct-financing lease , the lessor adds initial direct  costs to the net investment. Initial Direct Costs (Lessor) Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-51 The seller-lessee sells the asset to the buyer-leasor and immediately leases it  back. The underlying transaction is to borrow cash. Any gain is reversed out and amortized at the same rate of deprecation.  Losses are still recognized. If the lease is operating, still defer the gain but offset by rent expense,  not deprecation  (under IFRS it is recognized) Sale-Leasback (Lessee) Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-52 §840  does not indicate how to measure the current and noncurrent  amounts.  It requires that for the lessee the “obligations shall be separately  identified on the balance sheet as obligations under capital leases and  shall be subject to the same considerations as other obligations in  classifying them with current and noncurrent liabilities in classified  balance sheets.” Current versus Noncurrent Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-53 1.
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