intermediate-acct-test-bankch21

CHAPTER21ACCOUNTINGFORLEASESIFRSquestionsareavailableattheendofthischapter.TRUE-FALSE—ConceptualAnswerNo.DescriptionT1.Benefitsofleasing.F2.Accountingforlong-termleases.F3.Classifyingleasecontainingpurchaseoption.T4.Accountingforexecutorycosts.F5.Depreciatingacapitalizedasset.F6.Lesseerecordingofinterestexpense.T7.Benefitofleasingtolessor.F8.Distinctionbetweendirect-financingandsales-typeleases.F9.Lessors’classificationofleases.T10.Direct-financingleases.F11.Accountingforoperatinglease.F12.Computingannualleasepayments.T13.Guaranteedresidualvaluedefinition.F14.Guaranteedvs.unguaranteedresidualvalue.T15.Unguaranteedresidualvalueandminimumleasepayments.F16.Netinvestmentandguaranteed/unguaranteedresidualvalue.T17.Differencebetweendirect-financingandsales-typeleases.F18.Grossprofitinsales-typelease.T19.Reviewofestimatedunguaranteedresidualvalue.T20.FASBrequiredleasedisclosures.MULTIPLECHOICE—ConceptualAnswerNo.Descriptiond21.Advantagesofleasing.d22.Advantagesofleasing.b23.Basicprincipleofleaseaccounting.c24.Conceptualsupportfortreatingallleasesasasale/purchase.aS25.Essentialelementofalease.bS26.Bargainpurchaseoptionandminimumleasepayments.bP27.Costamountforacapitallease.a28.Leaseaccountingbylessee.c29.Knowledgeofthecapitalizationcriteria.d30.Componentsofminimumleasepayments.d31.Identificationofexecutorycosts.c32.Discountrateusedbylessee.a33.Depreciationofaleasedassetbylessee.b34.Effectofacapitalleaseonlessee'sdebt.aP35.Depreciationofacapitallease.a36.Identificationofleasetypeforlessor.d37.Elementsofleasereceivablebylessor.a38.Recognitionofunearnedleaseincome.cS39.Direct-financingleasereceivable.TestBankforIntermediateAccounting,FourteenthEdition21-2MULTIPLECHOICE—Conceptual(cont.)AnswerNo.DescriptiondS40.Thirdpartyguaranteeofresidualvalue.a41.Lessor’saccountingforresidualvalue.c42.Accountingforinitialdirectcosts.cS43.Differencebetweendirectfinancingandsales-typelease.bP44.Amountofrevenueinsales-typelease.c45.Accountingforasales-typelease.d46.Accountingforinitialdirectcosts.c47.Disclosingobligationsundercapitalleases.c48.Leasingcriteriatoavoidassetcapitalization.d*49.Recordingassetandinterestexpenseinsale-leasebacklease.b*50.Accountingforsale-leasebacklease.d*51.Gain/lossrecognitioninasale-leaseback.PThesequestionsalsoappearintheProblem-SolvingSurvivalGuide.SThesequestionsalsoappearintheStudyGuide.*ThistopicisdealtwithinanAppendixtothechapter.MULTIPLECHOICE—ComputationalAnswerNo.Descriptionb52.Operatingleaseexpenseforyear.c53.Calculateinterestexpenseanddepreciationexpenseforlessee.c54.Calculateminimumannualleasepayment.d55.Calculatetotalannualleasepayment.a56.Identificationofleasetypeforlessor.c57.Identificationofleasetypeforlessee.c58.Calculatedepreciationexpenseforlessee.d59.Identificationofleasetypeforlessee.c60.Calculateleasedassetamount.c61.Calculatetotalleaseobligation.a62.Computeinterestexpenseforyear.b63.Computeinterestexpenseforyear.d64.Calculateleaseliabilityamount.c65.Computeinterestexpenseanddepreciationexpenseforyear.c66.Computeinterestexpenseanddepreciationexpenseforyear.d67.Computedepreciationexpenseforleasewithtransferoftitle.a68.Calculateleasedassetamount.c69.Computeinterestexpenseforfirstyear.d70.Computeprincipalreductionforsecondyear.c71.Calculatedepreciationexpenseforlessee.b72.Computeinterestexpenseforfirstyear.c73.Calculateleasedassetandleaseliabilityamounts.a74.Calculateannualleasepayments.b75.Identificationofleasetypeforlessee.b76.Expenserecordedbylessee/operatinglease.c77.Calculatereductionofleaseobligationforlessee.a78.Identificationofleasetypeforlessor.c79.Calculateleasereceivable.AccountingforLeases21-3MULTIPLECHOICE—Computational(cont.)AnswerNo.Descriptiond80.Revenuesandexpensesrecordedbylessor/operatinglease.a81.Operatingleaseexpenseforyear.d82.Calculateexpenseofanoperatinglease.a83.Calculateincomefromoperatinglease.d84Journalentryindirect-financinglease.b85.Calculateleasepayments.b86.Journalentryforlessee.c87.Journalentryforlessee.c88.Calculatelossonguaranteedresidualvaluelease.c89.Calculateinterestrevenueinsales-typelease.c90.Determinegrossprofitandinterestrevenue.a91.Calculateinterestexpenseanddepreciationexpenseforlessee.b92.Calculateprofitandinterestincomeforlessor/sales-typelease.c93.Calculateprofitonsales-typeleaseandinterestincome.c94.Identificationofleasetypeforlessor.b95.Determinediscountrateimplicitinleasepayments.d96.Lease-relatedexpensesrecognizedbylessee.d97.Determinelong-termleaseobligationforlessee.b*98.Gainrecognizedbylesseeinasale-leaseback.b*99.Sale-leaseback/operatinglease.MULTIPLECHOICE—CPAAdaptedAnswerNo.Descriptionc100.Identificationofleasetypeforlessee.a101.Calculatetheleaseliabilityofalessee.d102.Calculatetheleaseliabilityofalessee.a103.Determinereductionofleaseobligationforlessee.d104.Calculateinterestexpenseforlessee.d105.Calculatedepreciationexpenseforlessee.c106.Recognitionofinterestrevenueinasales-typelease.a107.Calculateincomerealizedbylessor/sales-typelease.d*108.Reportinggainonasale-leaseback.d*109.Accountingforthegainonasale-leaseback.EXERCISESItemDe