Ask Experts Questions for FREE Help !
Ask
    salmankhan6721's Avatar
    salmankhan6721 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 11, 2011, 06:21 PM
    determine the type of lease
    I needed some help in this question

    determine the type of lease?

    cash payment of asset--$500,000

    fair value--$653,681

    lease term ---3 years
    semi annual rental payments - $123,000 at the beginning of each period
    economic life of the asset- 4 years
    implicit interest rate--12%
    unguranteed residual value--$40,000
    regulatory fees paid by lessor---$3,000 twice each year
    lessors initial direct costs--$4,500
    contingent rental payments---$4,000 if revenues exceed a specified base

    end of question
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
    Ultra Member
    		  
    #2

    May 12, 2011, 08:48 AM

    Please see the following announcement.

    Announcement:

    Look at the rules for determining if this is a capital lease. If it doesn't fit any of them, it is an operating lease. If you want to show your analysis and result, we can check it to make sure you understand. Thanks.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Type of lease [ 2 Answers ]

I have an office that I'm thinking of closing down and moving back to my apartment. Will my apartment then be considered (by NYC) a "commercial" space and thus have a commercial lease?. or can I continue with my present lease which is a "residential" lease)?

Type I and Type II Errors (Statistics and Probability) [ 1 Answers ]

A researcher studying stress is interested in the blood pressure measurements of chief executive officers (CEOs) of major corporations. He believes that the mean systolic blood pressure, of CEOs of major corporations is less than mm Hg, which is the value reported in a possibly outdated journal...

Type of lease [ 1 Answers ]

If I had verbally agreed to renew and resign a lease for 1 year but no lease is signed, is the lease considered Tenancy in Sufferance? Reside in Florida

Student Housing lease signed, no lease or security deposit. Can I cancel lease? [ 2 Answers ]

I have a student housing house. I require a $200 non-refundable lease deposit within 15 days of signing the lease (in this case it was due March 15). A $300 secutity deposit due June 1, and the rent less the lease deposit due August 28. I have a student that signed the lease, but never sent...

View more questions Search