Questions from Intermediate Accounting

Q: Braxton Technologies, Inc., constructed a conveyor for A&G

Braxton Technologies, Inc., constructed a conveyor for A&G Warehousers that was completed and ready for use on January 1, 2018. A&G paid for the conveyor by issuing a $100,000, four-year note that spe...

Q: Could a finance lease under IFRS be classified as an operating lease

Could a finance lease under IFRS be classified as an operating lease under U.S. GAAP? Explain.

Q: Newton Labs leased chronometers from Brookline Instruments on January 1, 2018

Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $200,000. The chronometers have a fair value of $260,000...

Q: Rhone-Metro Industries manufactures equipment that is sold or leased.

Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2018, Rhone-Metro leased equipment to Western Soya Co. for a four-year period ending December 31, 2022, at which t...

Q: On January 1, 2018, NFB Visual Aids issued $800

On January 1, 2018, NFB Visual Aids issued $800,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records i...

Q: The lease agreement and related facts indicate the following: a

The lease agreement and related facts indicate the following: a. Leased equipment had a retail cash selling price of $300,000. Its useful life was five years with no residual value. b. The lease term...

Q: The discount rate influences virtually every amount reported in connection with a

The discount rate influences virtually every amount reported in connection with a lease by both the lessor and the lessee. What is the lessor’s discount rate when determining the present value of leas...

Q: On December 31, 2018, Rhone-Metro Industries leased equipment

On December 31, 2018, Rhone-Metro Industries leased equipment to Western Soya Co. for a four-year period ending December 31, 2022, at which time possession of the leased asset will revert back to Rhon...

Q: The following relate to an operating lease agreement: a.

The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2018. b. The leased asset cost the lessor $800,000 and had a useful life of eight years with no...

Q: Listed below are several terms and phrases associated with leases. Pair

Listed below are several terms and phrases associated with leases. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.