A lessee should classify a lease transaction as a finance lease if it is noncancelable...
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Accounting
A lessee should classify a lease transaction as a finance lease if it is noncancelable and one or more of five classification criteria are met. Otherwise, it is an operating lease. What are these criteria?
2. What is selling profit on a sales type lease? How do we account for a sales type lease with a selling profit?
3. At the beginning of an operating lease, the lessee will record what asset and liability, if any?
4. Briefly describe the conceptual basis for asset and liability recognition under the right of use approach used by the lessee in a lease transaction.
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